On results of inspection of financial standing of PJSC JSCB 1Bank by provisional administration

The provisional administration of PJSC JSCB 1Bank appointed by Bank of Russia Order No. OD-905, dated 17 March 2016, following revocation of its banking licence established a poor quality of the bank’s loan portfolio resulted from extending loans to organisations not involved in real economic activities.

Besides, the provisional administration revealed the indications of moving out assets through assigning loan claim rights worth over 200 million on a deferred-payment basis to organisations which bear the signs of dummy companies.

According to estimates by the provisional administration, the asset value of PJSC JSCB 1Bank does not exceed 905.9 million rubles, while its liabilities to creditors amount to 1,416.1 million rubles.

On 19 May 2016, the Court of Arbitration of the Republic of North Ossetia — Alania took a decision to recognise PJSC JSCB 1Bank insolvent (bankrupt) and initiate bankruptcy proceedings with the state corporation Deposit Insurance Agency appointed as a receiver.

The Bank of Russia has submitted the information on the financial transactions bearing the evidence of criminal offences conducted by the former management and owners of PJSC JSCB 1Bank 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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12.10.2016 00.00.00