On activity of OJSC ROSSIYSKIY KREDIT BANK, CJSC M BANK, AMB BANK (PJSC) and BANK TULSKII PROMYSHLENNIK (PJSC)

By its Orders Nos. OD-1770, OD-1772, OD-1774, dated 24 July 2015, and Order No. 1790, dated 27 July 2015, the Bank of Russia cancelled banking licences of AMB BANK (PJSC), M BANK (CJSC), ROSSIYSKIY KREDIT BANK (OJSC) and BANK TULSKII PROMYSHLENNIK (PJSC) (hereinafter, the group of banks) and appointed provisional administration to manage these banks.

In the course of its examination of the quality of the assets of the group of banks and non-governmental pension funds associated with it, the Bank of Russia established that intra-group transactions carried out with the involvement of banks’ management and owners were aimed at withholding information from the supervision body on the actual financial standing of the banks and non-governmental pension funds of the group of banks as well as on transactions made to move out the assets.

The group of banks actually ignored core banking activity. The funds attracted were placed in the interests of the owners of the group of banks and related companies hence more than 50 percent of the credit portfolio of the group of banks is currently hard to recover.

The analysis of the mortgage participation certificates on the balance sheet of the group of banks worth 10.5 billion rubles showed that a fair value of land plots served as collateral is overstated at least twofold.

Currently, the provisional administrations to manage these credit institutions are examining their financial standing with the preliminary results showing that liabilities of the group of banks worth 210.5 billion rubles are well above the real value of their assets (109.9 billion rubles).

The Bank of Russia submitted the information on financial transactions bearing

the evidence of criminal offences conducted by the former management and owners

of the group of banks to the Prosecutor General’s office of the Russian Federation, the

Russian Ministry of Internal Affairs and the Investigation Committee of the Russian Federation for consideration and procedural decision making.

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