OREANDA-NEWS. The analysis of financial standing of LLC FCRB Bank conducted by a group consisting of the representatives of the Bank of Russia and the state corporation Deposit Insurance Agency (hereinafter, the Agency) in line with Bank of Russia Order No. OD-330, dated 3 February 2016, established low quality of the credit institution’s assets as a result of issuing loans to shell companies to the amount exceeding 19.2 billion rubles.

The Agency was appointed as the provisional administration of LLC FCRB Bank by Bank of Russia Order No. OD-992, dated 24 March 2016. The provisional administration encountered serious obstruction to its activity starting from the first day of its mandate. In the opinion of the Bank of Russia, that obstruction bore the evidence of concealing the withdrawing of the bank’s assets.

Specifically, the former management of LLC FCRB Bank failed to pass over to the provisional administration the originals of credit agreements to the total amount of 8.7 billion rubles. And the bank’s ABS did not contain certain information on transactions conducted by the bank and its customers.

Additionally, the provisional administration revealed facts bearing evidence of siphoning bank assets via the alienation and leasing of real estate to the total amount of roughly 0.7 billion rubles.

According to estimates made by the provisional administration assigned to LLC FCRB Bank by Bank of Russia Order No. OD-2108, dated 1 July 2016, due to the revocation of the credit institution’s banking licence, the value of the assets of LLC FCRB Bank does not exceed 4.1 billion rubles, while the value of its liabilities to creditors totals 31.8 billion rubles, including those to households amounting to 4.7 billion rubles.

On 15 September 2016, the Court of Arbitration of the city of Moscow issued a ruling on recognising LLC FCRB Bank insolvent (bankrupt) and on initiating bankruptcy proceedings with the state corporation Deposit Insurance Agency appointed as a receiver.

The Bank of Russia submitted information on financial transactions bearing the evidence of criminal offence conducted by the former management and owners of LLC FCRB Bank to the General Prosecutor’s Office, Ministry of Internal Affairs, and to the Investigative Committee of the Russian Federation for consideration and procedural decision making.