On results of inspection of financial standing of PJSC Tatfondbank held by provisional administration

The provisional administration to manage PJSC Tatfondbank appointed by Bank of Russia Order No. OD-542, dated 3 March 2017, following the revocation of its banking licence, in the course of inspection of the bank’s financial standing has established low quality of the bank’s loan portfolio as a result of lending to individuals and legal entities with dubious solvency and unable to meet their obligations, as well as to corporate borrowers which are shell companies.

Besides, the provisional administration found out that the bank’s management had executed several transactions bearing the evidence of moving out liquid assets and their replacement with assets of lower quality. The said transactions included assignments of claims and operations aimed at moving out liquid collateral.

The provisional administration also revealed the cases of preferential honouring of liabilities to certain creditors to the prejudice of others.

According to the estimate by the provisional administration, the assets of PJSC Tatfondbank do not exceed 71.4 billion rubles, whereas the bank’s liabilities to its creditors amount to 189.7 billion rubles.

On 17 April 2017, the Court of Arbitration of the Republic of Tatarstan ruled to recognise PJSC Tatfondbank as insolvent (bankrupt) and initiate bankruptcy proceedings. The State Corporation Deposit Insurance Agency was appointed as a receiver.

The Bank of Russia submitted the information on financial transactions bearing the evidence of the criminal offence conducted by the former management and owners of PJSC Tatfondbank 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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26.07.2017 00.00.00