On results of inspection of financial standing of PJSC M2M Private Bank held by provisional administration

The provisional administration of PJSC M2M Private Bank appointed by Bank of Russia Order No. OD-4399, dated 9 December 2016, following the revocation of its banking licence, held the inspection of the bank’s financial standing that revealed low quality of the bank’s loan portfolio which resulted from the bank’s lending to companies with poor financial position, including lending to companies controlled by the bank’s owners, some of which are registered and located abroad where it is not required to disclose and provide information when conducting financial operations.

Moreover, the bank acquired a numismatic collection from the beneficiary owner at an elevated price with further offsetting of its cost through assignment of overdue debt.

On 22 February 2017, the Arbitration Court of the City of Moscow recognised the PJSC M2M Private Bank bankrupt. 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 M2M Private Bank 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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