The value of the assets held by Fininvest Bank is not higher than Rub 1.3 bln, while its obligations to the creditors total Rub 14 bln, the Bank of Russia said in a report compiled by the temporary administration team, which was appointed at Fininvest Bank on July 7, the day when its license was revoked.
The temporary administration team revealed facts when the bank’s assets were withdrawn by issuing knowingly irrecoverable loans and executing transactions to substitute liquid collateral with loans granted to the entities with unknown creditworthiness for a total of Rub 19.5 bln, the regulator specified.
Besides, ahead of the license revocation the bank’s former management and owners executed a transaction to alienate real estate at the price twice below the book value. This being the case, contrary to the law the bank’s former executives abstained from providing the temporary administration team with documents of title to the real estate facilities and concealed the fact of the transaction itself.
The Bank of Russia sent information on financial operations with signs of penal acts, which were taken by the bank’s former management and owners, to the Prosecutor General’s Office and the Interior Ministry.
The court declared Fininvest Bank insolvent on August 19 and initiated bankruptcy proceedings. The State Depositary Insurance Agency (DIA) was approved as the bank’s receiver.
