Native name Банк Москвы Industry Finance Headquarters Moscow, Russia Successor VTB Bank | Traded as MSKB@RU Fate Merged with VTB Bank Founded 1995 Number of employees 10,504 | |
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Defunct May 10, 2016 (2016-05-10) Number of locations 42 branches in Moscow and Moscow region and 43 branches in major cities of Russia Profiles | ||
The Bank of Moscow (Банк Москвы) was a Russian bank that provided banking services to both corporate and retail customers until May 2016. Headquartered in Moscow, the bank had 267 outlets, including branch offices and cash desks. BoM had over 114,000 corporate and 9 million retail customers. In 2011 it was the fifth largest bank in Russia. As of 1 July 2016, it had 6.3 million banking cards in its portfolio. Its central office was located in the building of the Moscow International Bank in Moscow, on the corner of Kuznetsky Most and Rozhdestvenka streets.
Contents
- History
- Performance
- International rating agencies and rankings
- Russian rating agencies and rankings
- Logo
- References
On May 10 2016 its merger into VTB Bank was finalized.
In 2011, following a hostile takeover by VTB Bank, US$9 billion in fraudulent loans were discovered, and the bank received an unprecedented US$14 billion bailout. Russia has issued an international arrest warrant for Andrey Borodin for his suspected role in the fraud.
History
By February 2011, the Moscow government's 46.48% ownership had been completely sold to VTB Bank. VTB also acquired 25% plus one share of Capital Insurance Group, which had a 17.32% stake in the Bank of Moscow. The total purchase price was 103 billion rubles. Besides VTB, the Russian Alfa Bank, and Bank Austria, a subsidiary of UniCredit, declared great interest in buying the Moscow government's stake. The sale was made to VTB (according to the representative of the Moscow mayor's office) because of a higher price offered and the availability of complete documentation, including a permit to purchase from the Russian Federal Antimonopoly Service. In March 2011, VTB bought shares owned by Credit Suisse (2.77%) and shares owned by a Swiss fund (1.7%), bringing its stake to a controlling interest of approximately 51%.
In early April 2011, Andrey Borodin and Lev Alaluyev sold their 20.32% stake in Bank of Moscow to Vitaly Yusufov, son of the former Russian Energy Minister Igor Yusufov. Vitaly Yusofov had borrowed US$1.1 billion from the Bank of Moscow for this acquisition.
Borodin himself, who by this time had been indicted in absentia for abuse of office, said that the transaction was carried out with a "torn off by hand", and that the change of leadership at the bank led to the raids. By the end of September 2011, VTB had acquired more than 80% of the shares of the Bank of Moscow, buying from Vital Yusufov (20%), and Suleiman Kerimov (3.88%). Shares were also acquired as part of a package of the Metropolitan Insurance Group.
The media suggested when Borodin left, more than half of the bank's loan portfolio consisted of loans issued to companies affiliated with Borodin. Borodin himself refused to comment on this information. According to an investigation by the newspaper "Vedomosti", the total amount of loans granted by the bank to companies associated with Borodin was approximately 217 billion rubles, which exceeded the bank's equity. According to the newspaper, a significant part of these loans were used to repay loans which were dubious or not secured by liquid assets, and later this information was confirmed by an inspection of the Accounts Chamber of the Russian Federation.
Later, it was announced by VTB that the bank had 380 billion rubles in bad debt. As a result, in late September 2011 the Deposit Insurance Agency provided a loan for 10 years, amounting to 295 billion rubles. At 0.51% per annum (DIA itself provided the money to the Bank of Russia) to cover the newly formed "holes" in the accounts of the bank.
Performance
As of 31 December 2014, the assets of the Bank of Moscow amounted to RUB 2,129.1 billion, liabilities were equal to RUB 1,941.5 billion, and equity at RUB 187.6 billion.