OREANDA-NEWS. During the inspection of financial standing of the credit institution, the provisional administration of BANK GOROD JSC appointed by Bank of Russia Order No. OD-3183, dated 16 November 2015, due to the revocation of its banking licence, revealed operations bearing evidence of bank assets’ diversion, which operations had been conducted by the bank’s former management prior to the revocation of the banking licence and emergence of solvency problems. Specifically, the assets were diverted by replacing the bank’s credit portfolio in the amount of 10.5 billion rubles by receivables from the company with dubious solvency, by the disposal of the bank’s immovable property in the amount of over 470 million rubles, and also by the transfer of funds in the amount of 760 million rubles to top up the broker’s account followed by their transfer to a non-resident bank.

According to the estimate by the provisional administration, the assets of BANK GOROD JSC do not exceed 1.9 billion rubles, whereas the bank’s liabilities to its creditors amount to 13.2 billion rubles.

Under the circumstances, the Bank of Russia applied to the Court of Arbitration of the city of Moscow to recognise the bank as insolvent (bankrupt).

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 BANK GOROD JSC to the Prosecutor General’s Office of the Russian Federation, the Ministry of Internal Affairs of the Russian Federation and the Investigative Committee of the Russian Federation for consideration and procedural decision making.