On results of inspection of financial standing of LLC CB Financial Capital by provisional administration

The provisional administration of LLC CB Financial Capital appointed by Bank of Russia Order No. OD-3646, dated 25 October 2016, following the revocation of its banking licence, in the course of examination of the bank’s financial standing has revealed that during the period when the bank experienced solvency problems the bank’s owners executed transactions aimed at moving out liquid assets and at preferential honouring liabilities to certain creditors to the detriment of others, and also transactions to assign receivables on outstanding loans to the total amount of about 380 million rubles.

Besides, the analysis of the bank’s credit portfolio has established facts of underestimated credit exposure on outstanding loans issued to the bank’s borrowers to the total amount exceeding 300 million rubles.

According to estimates by the provisional administration, the bank’s asset value does not exceed 355 million rubles, whereas its liabilities to creditors amount to 460 million rubles.

On 12 December 2016, the Saint Petersburg Arbitration Court decided to recognise the bank insolvent (bankrupt), with the state corporation Deposit Insurance Agency appointed as a receiver.

The Bank of Russia submitted information on financial operations bearing the evidence of criminal offence conducted by the bank’s 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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14.03.2017 00.00.00