On results of inspection of financial standing of Trust Republic Bank LLC held by provisional administration

During the examination of financial standing of the Bank, the provisional administration of Trust Republic Bank LLC appointed by Bank of Russia Order No. OD-2470, dated 11 September 2014, due to the revocation of its banking licence, revealed that the value of its assets did not exceed 117 million rubles, while its liabilities to creditors amounted to 418.1 million rubles.

The main reason for insufficiency of the bank’s assets to fully meet the creditors’ claims is the revealed facts of asset diverting through cession of rights of claim on loan agreements as bogus liability payment, lending to borrowers deliberately incapable of meeting their credit obligations, and discounting of promissory notes of issuers at the stage of liquidation.

Under these circumstances, on 24 November 2014, the Arbitration Court of the city of Moscow adjudicated to recognise Trust Republic Bank LLC as insolvent (bankrupt) and to 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 Trust Republic Bank LLC to the General Prosecutor’s Office of the Russian Federation and the Ministry of Internal Affairs of the Russian Federation for consideration and procedural decision making.

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10.02.2015 00.00.00