OREANDA-NEWS. In the course of supervision activities the Bank of Russia has detected the underassessment of risks assumed by LLC LENOBLBANK resulting from a low quality of its assets. In the wake of a corresponding request made by the Bank of Russia the credit institution management performed a partial replacement of the troubled asset worth 1.7 billion rubles with units of a closed-end real estate unit investment fund (hereinafter, CREUIF) which had been overvalued in accounting documents.

Besides, LLC LENOBLBANK management avoided the transfer to the provisional administration of credit agreements and CREUIF unit acquisition contracts worth 0.2 billion rubles.

According to estimates by the provisional administration, the asset value of LLC LENOBLBANK did not exceed 2.2 billion rubles, while its liabilities to creditors amounted to 5.3 billion rubles.

On 17 December 2015, the Court of Arbitration of the city of Saint Petersburg and the Leningrad Region took a decision to recognise LLC LENOBLBANK insolvent (bankrupt) and to initiate bankruptcy proceedings with the state corporation Deposit Insurance Agency appointed as a receiver.

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