On results of inspection of financial standing of CB BOOM-BANK LLC held by provisional administration

The provisional administration to manage CB BOOM-BANK LLC as appointed by Bank of Russia Order No. OD-1375, dated 1 June 2018, following the revocation of its banking licence, conducted an investigation of the bank’s financial standing and identified operations aimed at withdrawal of its assets through lending to retail borrowers with dubious creditworthiness.

The results of inspection of the bank’s financial standing allowed the provisional administration to establish that the value of its assets totalled no more than 1.3 billion rubles and was insufficient to cover its liabilities in the amount of 1.6 billion rubles.

On 23 July 2018, the Arbitration Court of the Kabardino-Balkar Republic recognised the Bank as insolvent (bankrupt). The state corporation Deposit Insurance Agency was appointed as a receiver.

The Bank of Russia submitted the information on the financial transactions bearing the evidence of criminal offence conducted by the former management and owner of CB BOOM-BANK LLC 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.

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