Hole in the Military-industrial Bank exceeded 6 billion rubles.

Negative equity Military-industrial Bank (VPB) amounted to 6.7 billion rubles, reported the press service of the Bank of Russia. Earlier on Monday, 26 September, the regulator revoked the license of VPB.

10 days before that, the Central Bank introduced a temporary Bank administration, placing these functions at the Agency on insurance of contributions (ASV). The Central Bank argues that since the first day management of VPB began to hinder the work of the interim administration. In particular, managers and top managers was not in the workplace, there was no original documents on the part of the assets, and in some cases themselves credit history of legal entities and individuals, said the employee of the press service of the regulator, explaining that in such circumstances it was impossible to carry out the procedure of rehabilitation of the Bank.

“Prompt about the decision to revoke Bank licenses for banking operations was taken in view of the above, as well as the presence of CB binding grounds for revocation of license in accordance with the requirements of the normative acts of the Central Bank temporary administration formed provisions for possible losses on assets that have not been confirmed documentary. As a result, the value of own funds (capital) fell to minus 6.7 billion rubles”, — he explained.

Military-industrial Bank as of September occupied the 90th place in terms of assets among Russian banks. On August 1 in the Bank, there were more than 30 billion rubles of public funds.

VPB began to experience problems in the summer. How to write “Vedomosti”, at the end of August the Central Bank ordered the Bank to dosdat reserves to 6 billion rubles., which had a negative impact on the financial position of the Bank: he had to create a 50% provision, almost half of the loan portfolio. The Chairman of the Board of Directors of VPB Yuri Colton explained to the newspaper that in August, the Bank increased the capital to 12 billion rubles due to restoration of reserves and an additional issue, but for the provisions of the Central Bank assets decreased by September to 5.8 billion rubles.

On 7 September, the Bank has stopped issuing deposits. Restrictions were imposed on cash withdrawals from deposits and Bank cards, the Bank also stopped taking new deposits of physical persons. Two days later, the Central Bank cut the Bank from its electronic payments system (BESP).

12 Sep VPB has addressed in Arbitration court of Moscow with the request to recognize the illegal actions of the regulator. Shortly thereafter, the Prosecutor General’s office started audit of the Bank, to monitor compliance with legislation on protection of consumers ‘ rights. The test will last about 20 days, said the Agency.