On results of inspection of financial standing of JSC Vologdabank held by provisional administration

The provisional administration of JSC Vologdabank appointed by Bank of Russia Order No. OD-4613, dated 19 December 2016, due to the revocation of its banking licence, exposed that a securities portfolio worth more than 900 million rubles consists of non-liquid unmarketable securities of Russian issuers. In addition, the provisional administration failed to receive documents confirming that securities are available in the depository of the bank which keeps the record of securities worth more than 800 million rubles.

The provisional administration also revealed transactions which bear evidence of asset diversion through issuing loans to companies with dubious creditworthiness.

According to the provisional administration’s estimates, the assets of JSC Vologdabank stand at 711 million rubles, whereas its liabilities to creditors amount to 1380 million rubles, including 1129 million rubles payable to depositors.

On 7 February 2017, the Court of Arbitration of the Vologda Region ruled to recognise JSC Vologdabank 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 the financial operations performed by the former management and owners of JSC Vologdabank which bear the evidence of the criminal offence to the Prosecutor General’s Office of the Russian Federation, the Ministry of Internal Affairs of the Russian Federation and Russian Investigative Committee for consideration and procedural decision making.

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30.03.2017 00.00.00