Translated material
The Central Bank revoked the license of OFK Bank
The Central Bank revoked the license of the United Financial Capital bank, which is one-quarter owned by a classmate of President Vladimir Putin.
Problems in the activities of OFK Bank PJSC arose due to the use of a risky business model focused on lending to companies in the production and distribution sector of alcoholic beverages, the Central Bank said in a statement .
“The Bank financed economically related enterprises in this industry, using various “schemes” in order to formally comply with the prudential standards established by the Bank of Russia. The state corporation “Deposit Insurance Agency” conducted a survey of the financial situation, which revealed a complete loss of the bank’s own funds,” the Central Bank reported.
On March 21, the Central Bank appointed a temporary administration of the Deposit Insurance Agency at OFK Bank for six months and imposed a three-month moratorium on satisfying creditors’ claims. Before this, in March, OFK Bank made payments intermittently, and then stopped operations, Vedomosti recalls.
In terms of assets, OFK Bank ranked 127th in the Russian banking system as of April 1. The largest stake of 25% of shares belongs to Nikolai Egorov, a classmate of Russian President Vladimir Putin, a partner in the law firm “Egorov, Puginsky, Afanasyev and Partners.” Egorov is actually a minority shareholder of the bank, but he has never been involved in operational management issues. Egorov tried to remove its president, Nikolai Gordeev, from managing the bank, but other shareholders did not support him.
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