On results of inspection of financial standing of JSC Starbank by provisional administration

The provisional administration of JSC Starbank appointed by Bank of Russia Order No. OD-921, dated 18 March 2016, following revocation of its banking licence found out in the course of examination of the bank’s financial standing that its former management and owners on the eve of revocation of the banking licence realised assets worth 1.8 billion rubles on a deferred-payment basis in favour of a counterparty bearing the signs of a shell company.

Besides, the bank failed to provide documents to confirm competence of recording in the balance sheet investments into real estate construction worth about 5 billion rubles.

Simultaneously, the provisional administration detected the fact of non-adequate assessment by the bank of a credit risk worth over 6 billion rubles caused among other things by borrowers’ improper repayment performance and considering the evidence of their inability to fulfil their loan liabilities.

According to estimates by the provisional administration, the asset value of JSC Starbank does not exceed 7.2 billion rubles, while its liabilities to creditors amount to 15.7 billion rubles.

On 4 August 2016, the Court of Arbitration of the city of Moscow took a decision to recognise JSC Starbank 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 JSC Starbank 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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14.09.2016 00.00.00