Results of provisional administration-conducted inspection of Bank IBSP (JSC)

The provisional administration to manage the credit institution Bank IBSP (JSC) (hereinafter, the Bank) appointed by Bank of Russia Order No. OD-2853, dated 31 October 2018, following the banking licence revocation, in the course of its inspection of the Bank established that the Bank’s officials had conducted operations which suggest the intention to divert assets through lending to legal entities (including those associated with the Bank) incapable of meeting their obligations, and through disposal of the Bank’s property.

Furthermore, the provisional administration revealed the evidence of asset withdrawal by the Bank’s officials through rent payments to the corporate borrower associated with one of the Bank’s beneficiaries, and through dubious investments in non-residential construction.

The provisional administration estimates the value of the Bank’s assets to be no more than 10.8 billion rubles, whereas its liabilities to creditors stand at 23.9 billion rubles.

On 24 September 2019, the Arbitration Court of St. Petersburg and the Leningrad Region recognised the Bank as bankrupt. The State Corporation Deposit Insurance Agency was appointed as receiver.

In addition to the information sent earlier, the Bank of Russia submitted information on financial transactions suggestive of criminal offence conducted by the Bank’s officials to the Prosecutor General’s Office of the Russian Federation and the Investigative Department of the Ministry of Internal Affairs of the Russian Federation for consideration and procedural decision-making.

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