The negative difference between Dig-Bank’s assets and liabilities, based on CBR’s inspection, amounted to Rub 2.04 bln, the lending institution’s financial statement, which was published in the Bank of Russia Bulletin, showed.
Osetia-based Dig-Bank was stripped of its license on June 23, 2014 due to the violation of CBR’s regulations and Russian laws on preventing legalization of criminal income. The regulator’s investigation established that on the day where the lending institution’s license was revoked its assets were equal to Rub 396.6 mln instead of Rub 2.7 bln, as the bank specified. At the same time, the bank’s liabilities equaled Rub 2.4 bln.
Dig-Bank’s financial statement also showed that the lending institution failed to compile loan loss provisions for over Rub 1.7 bln, which increased the bank’s net loss on the license revocation day to Rub 2.6 bln.
Moreover, the Bank of Russia established that the bank artificially inflated the cost of fixed assets and intangibles by around 4x. Based on the regulator’s estimates, on June 23, 2014 they were worth slightly more than Rub 155 mln.
