On results of inspection of financial standing of the credit institution Economic Union Bank (JSC)

The provisional administration of the credit institution Economic Union Bank (JSC), appointed by Bank of Russia Order No. OD-629, dated 13 March 2017, due to the revocation of its banking licence, revealed operations aimed at diverting bank’s assets through lending to borrowers with dubious creditworthiness or incapable to meet their obligations, and through assigning non-residential premises owned by the bank.

In addition, the provisional administration revealed operations of preferential satisfaction of claims of the bank’s management when the bank experienced solvency problems.

The provisional administration estimates the value of Economic Union Bank (JSC) assets to be under 0.6 billion rubles, whereas its liabilities to creditors amount to 1.9 billion rubles, including 1.6 billion rubles owed to individuals.

On 21 April 2017, the Court of Arbitration of the city of Moscow ruled to recognise the credit institution Economic Union Bank (JSC) 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 the credit institution Economic Union Bank (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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