On results of inspection of financial standing of BANK RESERVE (JSC) held by provisional administration

The provisional administration to manage the credit institution BANK RESERVE (JSC), appointed by Bank of Russia Order No. OD-2241, dated 9 August 2017, following the revocation of its banking licence, in the course of examination of the bank’s financial standing has revealed operations towards siphoning off of assets by extending loans to borrowers with dubious solvency or unable to meet their liabilities, to a total of more than 730 million rubles; furthermore, these operations included the purchase of a liquidated company’s promissory note worth 90.6 million rubles.

The provisional administration estimates the value of the Bank’s assets to be under 1128.24 million rubles, vs 1305.73 million of its liabilities to creditors including 1280.46 million rubles to individuals.

On 11 October 2017, the Arbitration Court of the Chelyabinsk Region recognised BANK RESERVE (JSC) as insolvent (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 BANK RESERVE (JSC) 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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