"Hole" in Probusinessbank stock stands at least at 67 bln rubles ($1 bln)

The "hole" in the stock of the Moscow-based lender Probusinessbank stands at no less than 67 bln rubles ($1 bln), Central Bank Deputy Chairman Mikhail Sukhov told TASS on Wednesday. "According to the documents, excess of liabilities over the cost of Probusinessbank assets stands at least at 67 bln rubles. The "hole" is caused by presence of various financial assets with signs of fictitious origin," he said. According to the data provided by the Central Bank, among such assets are securities in foreign depositories, financial requirements for a foreign "pseudo-bank", uncovered bills of credit without obvious economic substance, obviously fictitious time bargains, and other operations. The lenders’ debt to depositors totals 27 bln rubles ($420 mln), with 23 bln ($358 mln) being secured, Deputy Chairman said. As was reported earlier the Bank of Russia made a decision to recall the banking license of Probusinessbank from August 12. Russia’s Deposit Insurance Agency is vested with temporary administration functions, the Bank of Russia said. The bank pursued a risky policy related to investment of funds into poor quality assets. The credit institution fully lost its equity as a result of forming provisions appropriate for undertaken risks, the Central Bank said. The management and owners of the credit institution failed to undertake effective measures to normalize operations of the bank. The regulator simultaneously approved the plan of the Deposit Insurance Agency on participation in settlement of bank’s liabilities, including the competitive selection of a bank to acquire a portion of property and liabilities of Probusinessbank.

• Full name
  Probusinessbank
• Registration country
  Russia
• Industry
  Banks