Results of provisional administration-conducted inspection of Public Bank (JSC)

The provisional administration to manage Public Bank (JSC) (hereinafter, the Bank) appointed by Bank of Russia Order No. OD-1175, dated 24 July 2020, following the banking licence revocation, in the course of the inspection of the Bank established circumstances suggesting that the Bank’s former management and owners performed activities aimed at preferential satisfaction of certain creditors’ claims and syphoning out liquid assets through the sale of property and precious metal coins as well as through lending to borrowers incapable to meet their obligations. These activities resulted in damage to the Bank in the amount of at least 1.2 billion rubles.

According to the assessment by the provisional administration, the value of the Bank’s assets is insufficient to fulfil its obligations to creditors.

On 21 August 2020, the Bank of Russia applied to the Court of Arbitration of Moscow to declare the Bank insolvent (bankrupt). The hearing is scheduled for 30 October 2020.

The Bank of Russia submitted the information on the financial transactions suspected of being criminal offences that had been conducted by the Bank’s officials to the Prosecutor General’s Office of the Russian Federation and the Investigative Committee of the Ministry of Internal Affairs of the Russian Federation for consideration and procedural decision-making.

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08.10.2020 00.00.00