On results of inspection of financial standing of LLC CB El Bank by provisional administration

The provisional administration of LLC CB El Bank appointed by Bank of Russia Order No. OD-1407, dated 5 May 2016, following revocation of its banking licence detected in the course of examination of the bank’s financial standing transactions carried out by LLC CB El Bank former management which bear the evidence of a preferential settlement of claims from certain creditors to the detriment of other creditors also through the encumbrance of the bank’s liabilities, as well as transactions aimed at moving out liquid security for claims to borrowers with dubious solvency worth over 100 million rubles.

Besides, the provisional administration detected the facts of moving out bank’s assets through extending loans to shell companies not involved in real economic activities worth about 2.2 billion rubles.

According to estimates by the provisional administration, the total asset value of LLC CB El Bank does not exceed 3.7 billion rubles, while its liabilities to creditors amount to 5.9 billion rubles including liabilities to households worth 5.1 billion rubles.

On 27 July 2016, the Court of Arbitration of the city of the Samara Region took a decision to recognise LLC CB El Bank insolvent (bankrupt) and initiate bankruptcy proceedings with the state corporation Deposit Insurance Agency appointed as a receiver.

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

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07.09.2016 00.00.00