OREANDA-NEWS. During the inspection of financial standing of the credit institution, the provisional administration of JSC VLBANK appointed by Bank of Russia Order No. OD-188, dated 29 January 2015, due to the revocation of its banking licence, revealed operations of the bank's former management bearing evidence of bank assets' diversion by substituting the credit portfolio with illiquid assets and promissory notes of companies with dubious solvency totalling roughly 1.2 billion rubles.

At the same time, during the period of its actual insolvency the bank satisfied claims of certain creditors at the expense of other creditors.

According to the estimate of the provisional administration, the value assets of JSC VLBANK did not exceed 1.7 billion rubles, whereas the bank's liabilities to its creditors amounted to 2.2 billion rubles.

Under these circumstances, on 19 March 2015, the court of arbitration of Irkutsk Region made a ruling to recognize JSC VLBANK as insolvent (bankrupt) and initiate bankruptcy proceedings. The state corporation Deposit Insurance Agency was approved 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 VLBANK to the Prosecutor General's Office of the Russian Federation and the Ministry of Internal Affairs of the Russian Federation for consideration and procedural decision making.