On results of inspection of financial standing of JSCB FINPROMBANK (PJSC) by provisional administration

The provisional administration of JSCB FINPROMBANK (PJSC) appointed by Bank of Russia Order No. OD-3145, dated 19 September 2016, following the revocation of its banking licence, in the course of examination of the bank’s financial standing has revealed that the value of JSCB FINPROMBANK (PJSC) assets did not exceed 15.9 billion rubles, while its liabilities to creditors amounted to 39.5 billion rubles.

The key reason explaining the insufficiency of the bank’s assets to satisfy creditors’ claims to the fullest extent is the evidence revealed by the provisional administration. The latter specifically established the facts of siphoning the bank’s assets by issuing invariably non-repayable loans and conducting transactions to replace loan debt with illiquid securities of non-resident companies with unsatisfactory financial standing and bad reputation in the market, and also by the replacement of liquid securities with illiquid accounts receivable of insolvent companies.

On 24 October 2016, the Moscow Arbitration Court decided to recognise JSCB FINPROMBANK (PJSC) insolvent (bankrupt) and initiate bankruptcy proceedings, with the state corporation Deposit Insurance Agency appointed as a receiver.

The Bank of Russia submitted information on financial operations bearing the evidence of criminal offence conducted by JSCB FINPROMBANK (PJSC) former management and owners 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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20.12.2016 00.00.00