On results of inspection of financial standing of JSC CB Northern Credit held by provisional administration

The provisional administration to manage JSC CB Northern Credit as appointed by Bank of Russia Order No. OD-3755, dated 29 December 2017, following banking licence revocation, conducted an investigation of the bank’s financial standing and identified operations aimed at withdrawal of its assets in the amount of over 3.9 billion rubles. These operations were conducted just before the bank’s licence revocation with the participation of its management and officials by means of the so-called ‘schemes’ with securities, disposal of real estate and assignment of receivables on the outstanding corporate and individual loans.

The provisional administration estimates the value of JSC CB Northern Credit assets to be no more than 2.4 billion rubles, whereas its liabilities to creditors amount to almost 8 billion rubles, including over 4 billion rubles to individuals and individual entrepreneurs.

On 27 February 2018, the Arbitration Court of the Vologda Region recognised the bank as insolvent (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 JSC CB Northern Credit 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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13.04.2018 00.00.00