Results of provisional administration-conducted inspection of JSC Kranbank

The provisional administration to manage JSC Kranbank (hereinafter, the Bank) appointed by Bank of Russia Order No. OD-2851, dated 13 December 2019, following its banking licence revocation, in the course of the inspection of the Bank established that the Bank’s officials and management conducted illegal operations bearing the evidence of theft of the Bank’s property which had been received as compensation.

In addition, the inventory reconciliation of the Bank’s property conducted by the provisional administration identified the absence (shortage) of property (a discrepancy between the actually available property and the accounting records) for over 67 million rubles.

Due to the insufficient amount of assets for the Bank to perform its obligations to its creditors, on 17 March 2020, the Arbitration Court of the Ivanovo Region recognised the Bank as insolvent (bankrupt). The State Corporation Deposit Insurance Agency was appointed as receiver.

The Bank of Russia submitted the information on the financial transactions suspected of being criminal offences that had been conducted by the Bank’s officials to the Prosecutor General’s Office of the Russian Federation and the Investigative Committee of the Ministry of Internal Affairs of the Russian Federation for consideration and procedural decision-making.

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09.04.2020 00.00.00