On results of inspection of financial standing of credit institution CB Novopokrovskiy LLC by provisional administration

The provisional administration to manage CB Novopokrovskiy LLC as appointed by Bank of Russia Order No. OD-3388, dated 04.12.2017, following the revocation of its banking licence, conducted an investigation of the Bank’s financial standing and revealed lending to individuals with poor financial standing. Loan issues were approved by the Bank’s Board of Directors in defiance of negative decisions of the Credit Committee. Borrowers stopped servicing their debt following the revocation of the banking licence of CB Novopokrovskiy LLC.

The provisional administration estimates that borrowers invested the funds in residential development. This may point to the efforts of the Bank’s officials and owner to divert a total of more than 1.1 billion rubles in assets of CB Novopokrovskiy LLC.

In addition, the provisional administration revealed that the Bank’s management issued bonus orders (mostly related to executives) in defiance of the signs of insolvency of CB Novopokrovskiy LLC.

The Bank of Russia submitted the information on financial transactions bearing the evidence of the criminal offence conducted by the officials of CB Novopokrovskiy LLC to the Prosecutor General’s Office of the Russian Federation, the Ministry of Internal Affairs of the Russian Federation and the Investigative Committee of the Russian Federation for consideration and procedural decision making.

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