On results of examination of financial standing of BANK FININVEST LLC conducted by provisional administration

The provisional administration of BANK FININVEST LLC appointed by Bank of Russia Order No. OD-1658, dated 7 July 2014, due to the revocation of its banking licence in the course of examination of this credit institution’s financial standing has established that the value of assets of BANK FININVEST does not exceed 1.3 billion rubles, while the liabilities to creditors amount to 14 billion rubles.

The main reason of insufficient bank’s assets to fully meet creditors’ claims were the facts revealed by the provisional administration of moving out the assets through extending known unrecoverable loans and making transactions to replace the assets with liquid collateral for the loans of companies with dubious creditworthiness worth 19.5 billion rubles.

Besides, prior to the revocation of the licence the former management and bank owners pursued actions to alienate property to the amount of twice as high as the balance-sheet value. Also, the former management in violation of law failed to transfer to the provisional administration the evidence of right-establishing documents on real estate and concealed the very fact of its sale.

Under these circumstances, on 19 August 2014, the court of arbitration of the city of Saint-Petersburg and the Leningrad Region took a decision to declare BANK FINIVEST LLC insolvent (bankrupt) and to launch a bankruptcy procedure with the state corporation Agency for Deposit Insurance appointed as a receiver.

The information covering the financial operations of the former management and owners of BANK FININVEST LLC with signs of penal acts was forwarded by the Bank of Russia to the Prosecutor General’s Office of the Russian Federation and the Interior Ministry of the Russian Federation for investigation and making appropriate procedural rulings.

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24.09.2014 00.00.00