OREANDA-NEWS. October 01, 2015. During the inspection of financial standing of the credit institution, the provisional administration of OJSC CB MAST-Bank appointed by Bank of Russia Order No. OD-1437, dated 24 June 2015, due to the revocation of its banking licence, revealed that the value of the bank’s assets did not exceed 7.5 billion rubles, while its obligations to creditors amounted to 14.3 billion rubles.

During the inspection of financial standing of the credit institution, the provisional administration revealed that in the run-up to the licence revocation management and owners of OJSC CB MAST-Bank conducted transactions to divert and replace liquid assets — monetary funds borrowed from households and corporates.

During the period when the bank experienced solvency problems amid untimely execution of clients’ settlements, the bank returned to a shareholder in cash free financial assistance previously provided to the bank.

Besides, the bank’s management replaced highly liquid Eurobonds with non-exchange traded shares of issuers with dubious creditworthiness.

Lending operations in the total amount of at least 6.3 billion rubles have signs of asset diversion from the bank: borrowers do not exist at the indicated registration addresses, have terminated debt servicing, including interest payments, after the bank’s licence was revoked.

On 19 June 2015, the Court of Arbitration of the city of Moscow recognised OJSC CB MAST-Bank as insolvent (bankrupt) and initiated bankruptcy proceedings. The state corporation Deposit Insurance Agency was appointed 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 OJSC CB MAST-Bank to the Prosecutor General’s Office of the Russian Federation, the Ministry of Internal Affairs of the Russian Federation and the Investigation Committee of the Russian Federation for consideration and procedural decision making.