On results of inspection of financial standing of JSC RCB by provisional administration

During the inspection of the financial standing of JSC RCB, its provisional administration appointed by Bank of Russia Order No. OD-3140, dated 19 September 2016, following the revocation of the banking licence, has revealed operations, conducted by the bank’s former management and owners and bearing evidence of moving out assets in the amount of no less than 2.7 billion rubles, such as knowingly providing non-performing loans to insolvent borrowers resembling shell companies.

The provisional administration has also revealed that the bank’s former management took actions to include overvalued real estate investments in the balance sheet.

According to the provisional administration estimates, the value of JSC RCB assets does not exceed 0.5 billion rubles, while its liabilities to creditors amount to 2.4 billion rubles.

On 14 November 2016, the Court of Arbitration of the Ulyanovsk Region made a ruling to recognise JSC RCB as insolvent (bankrupt) and initiate bankruptcy proceedings with the state corporation Deposit Insurance Agency appointed as a receiver.

The Bank of Russia submitted the information on financial operations bearing evidence of criminal offences of JSC RCB 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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06.12.2016 00.00.00