OREANDA-NEWS. In the course of off-site supervision, the Bank of Russia revealed that CB Transportny LLC conducted an aggressive policy of raising household funds through, inter alia, offering increased interest rates on deposits which deliberately resulted in unprofitability of its activity due to the lack of the bank's assets capable of generating sufficient income.

Given the above mentioned and due to the violations of Bank Russia regulations on quality assessment of loan and similar debts revealed, inter alia, by the inspection, repeated application of enforcement actions, and complete loss of capital, by its Order No. OD-1107, dated 20 May 2015, the Bank of Russia revoked the banking licence from CB Transportny LLC from 20 May 2015.

Currently, the provisional administration appointed due to the revocation of the licence from CB Transportny LLC conducts an inspection of the bank's financial standing, its preliminary results give a reason to assume that the bank built up the most part of the debt to divert assets and loans were extended to borrowers not in the framework of their real business activity, but for the benefit of the bank's management and owners.

Due to the insufficiency of property (asset) value of CB Transportny LLC to meet creditor's claims, on 28 May 2015, the Bank of Russia submitted a claim to the Arbitration Court of the city of Moscow on recognising CB Transportny LLC as insolvent (bankrupt) and initiating bankruptcy proceedings.

According to preliminary estimates of the provisional administration, the bank's liabilities exceed its assets by over 20 billion rubles.

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 Transportny 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.