On results of inspection of financial standing of CB Express Credit (JSC) held by provisional administration

During the inspection of financial standing of CB Express Credit (JSC), the provisional administration of the credit institution appointed by Bank of Russia Order No. OD-3984, dated 16 November 2016, due to the revocation of its banking licence, revealed that the quality of the bank’s loan portfolio was low due to the lending of more than 1.6 billion rubles to shell companies.

In addition, the provisional administration revealed that in the run-up to the licence revocation the management and owners of the bank carried out operations which bear signs of asset diversion and replacement of liquid assets with non-liquid ones through assignment to insolvent counterparties of claims to the bank’s corporate and retail borrowers in the total amount of more than 1 billion rubles.

The provisional administration estimates that the value of assets of CB Express Credit (JSC) does not exceed 2.6 billion rubles whereas its liabilities to creditors stand at 3.8 billion rubles, including 3.4 billion rubles due to households.

On 2 March 2017, the Court of Arbitration of the city of Moscow ruled to recognise the bank as bankrupt. 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 CB Express Credit (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.

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