What happened to the Northern Credit Bank (Vologda)?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The history of Severny Kredit bank from Vologda is notorious for many Russians. The scandal with the closure of bank branches in 2017 came as a surprise to 56,000 Vologda residents. The press paid special attention to the bankruptcy of Northern Credit, since the Government of Vologda acted as one of the main investors in the credit organization. Independent experts and journalists suspected members of the Government of conspiring with the bank's management. What happened to Northern Credit?

Bank financial problems

Opened in Arkhangelsk in 1993, Severny Kredit Bank did not experience serious financial difficulties until 2017. Problems with assets began after the arrival of new management. Acting Chairman of the Board Sergey Krylov and his team, who actually managed the bank, did everything to make Northern Credit bankrupt.

With the change in the composition of the Board, the bank's assets decreased to a critical value in1.5% (the minimum amount required by the Central Bank must be at least 2%). Prior to that, in 2014, Northern Credit was in the top 250 in Russia in terms of assets (239th place with a share of 7.6 billion rubles).

Regional support

Clients of the bank had no idea about the financial problems of the lender, as the bank "Northern Credit" in Vologda fulfilled its obligations. Citizens were particularly trusted by the fact that the majority of shares (more than 23) belonged to the Government of the Vologda Oblast.

The acquisition of shares worth more than 410 million rubles (in total) took place in 2010-2011. At that time, V. E. Pozgalev, ex-governor of the region (1996-2011), headed the Government.

Active financing of the bank for such a large amount is an unusual distribution of the regional budget. Pozgalev justified his decision by "investing in the long-term assets of a reliable company." At that time, Severny Kredit Bank in Vologda was popular with citizens, and it did not need such impressive preventive measures.

Suspicions of bankruptcy

Prerequisites for the loss of liquidity of the "Northern Credit" appeared only in December 2017. But already in 2013-2014. information about dubious schemes in which the bank's management was noticed more than once slipped in the media. Suspicions were held back by the presence of a large financial share from the regional budget and the ownership of 23% of the company's shares by the Government of the Vologda Region.

Therefore, the residents of Vologda and other regions did not think about the possible collapse of the lender until the ATMs of the "Northern Credit" stopped dispensing cash in excess of 5 thousand rubles. The restriction was set on December 17, 2017. And 12 days later, after the shortage of cash in the terminals, the license was revoked from the Northern Credit Bank in Vologda.

Deterioration of the situation in bank branches

Northern Credit only "frightened" its customers by restricting cash withdrawals. The real problems began for depositors after December 25th. A week after the failure with ATMs, bank managers refused to accept payments, open accounts and issue funds from deposits.

On December 29, 2017, the license was revoked from Severny Credit Bank in Vologda. Unlike most creditors, employees began to notify depositors in advance of financial difficulties. The preventive measures of the bank employees allowed more than 39% of customers to withdraw their money before the license was revoked.

Reasons for revoking the license from Northern Credit

Customers of failed banks always want to know what caused the financial collapse. Why the license of the Northern Credit bank from Vologda was revoked, now more than 50 thousand Vologda residents know.

The prerequisites for ruin were fraudulent actions by the bank's management. In December 2017, management members were involved in an asset stripping scheme illegally.

The police also had questions to the ex-governor regarding the legality of the sale and purchase of Northern Credit shares. An investigation was carried out into the irrational use of the state budget, since before the acquisition of the bank's shares, their price unexpectedly "flyed up" 3 times.

The license of Severny Credit Bank in Vologda was revoked on December 29, 2017. The main reason is the fact of non-compliance with the requirements of the law regarding the implementation of banking activities in the territory of the Russian Federation.

What happened to the depositors?

More than 43,000 depositors were left without their investments after the revocation of the license from Severny Kredit Bank. Responsibilities for the return of funds were assumed by the state company "Deposit Insurance Agency" as a bankruptcy trustee.

According to the Central Bank's calculations, Northern Credit owes its customers more than 2.15 billion rubles. Since the bank has been part of the deposit insurance system since 2004, each client of the company could count on a return of 1.4 million rubles in case of an insured event (revocation of a license from a financial institution).

Where can depositors of Northern Credit Bank get money?

Payments were controlled by DIA. The return of funds to depositors of failed banks was carried out in agent banks, which were appointed by the Deposit Insurance Agency.

One of the agents in the region is Sberbank. List of branches with addresses and opening hours where you can applyapplication for insurance compensation, shown in the photo.

Besides Sberbank, Northern Credit clients can apply to the last working office. It is located on st. Mira, d. 1.

At the bank office, depositors can apply for a refund or pay a consumer loan without commission.

Obligations of borrowers after revocation of the license from the bank

If depositors, having learned about the bankruptcy of the company, are frantically trying to return their invested money in any way possible, then borrowers hope that the bank will "forget" about their debt. But the revocation of a license is not yet a reason to stop paying on loan obligations.

According to the law, if the bank "Severny Credit" in Vologda has its license revoked, the obligation to control the loan is assumed by the insurer. Since 2014, it has been DIA.

Borrowers of Severny Kredit Bank must deposit cash under the loan according to the previously issued schedule. During the bankruptcy period (December 20-29, 2017), customers could have difficulty paying their loan account. Therefore, during the bankruptcy procedure and revocation of the company's license, interest and fines are not accrued to borrowers (or are canceled after their preliminary accrual).

Having learned what happened to the Severny Kredit bank in Vologda, not all payers are aware of which account money for loans should be transferred to. Information is located and regularlyis updated on the official website of the DIA in the section "Liquidation of banks" ("Northern Credit").

Customer contact information

To contact the experts of the "Deposit Insurance Agency", you can use several options. The telephone number of Severny Kredit Bank in Vologda is not listed on the DIA website, but customers can call a dedicated line for depositors.

For letters, a postal address is provided in the capital (127055, Moscow, Lesnaya st., 59, building 2) and the region (160009, Vologda, Chekhov st., 30).

Customers of Severny Credit Bank in Vologda can send a notification and ask questions of interest by e-mail.