"Growth Bank": problems (2014). JSC "Rost Bank", Rostov-on-Don

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

JSC ROST Bank, which experienced problems back in 2014, is currently a successful financial institution that is actively supported by the domestic government. The central office of the bank is located in Moscow. There are branches in different parts of the country, including in Rostov-on-Don and Orel, in Murmansk and Ryazan, in Tver and Saratov, and in many other settlements. The authorized capital of the institute is 2,375,139,760 rubles.

Back in history

Bank ROST appeared back in 1994 and was known at that time as Kazansky Bank. In 2004, the legal form of the financial institution was changed from LLC to OJSC. In 2013, as a result of the merger of Rost and Kazansky banks, a financial institution was formed, known today as Bank ROST. Today, there are about 40 thousand individuals and 3 thousand legal entities on the account of a credit institution. The number of people who have chosen an institution as a partner is systematically increasing. A financial institution operates on the basis of a general license of the Central Bank of the Russian Federation with the right toopening branches in the country and abroad.

Financial policy and priorities of a banking institution

JSC "ROST Bank" (problems with liquidity in 2014, unfortunately, were very serious) throughout the history of its existence, the interests of customers have always been chosen as the main priority. This financial institution was one of the first on the market to offer its partners the best banking products and innovations. The course was taken for long-term cooperation with each client.

The development strategy of the organization is characterized by rigid conservatism. The work is carried out exclusively in the real sector of the economy. The service of the bank is in constant dynamics, as technology develops, it is modernized and improved. The financial institution pursues an active lending policy, constantly and confidently increasing its portfolio.

Reliable partner

"ROST Bank" of Rostov-on-Don, as well as branches in Moscow and St. Petersburg, is a member of the REUTERS and SWIFT systems. This opens up the possibility of providing international money transfer services to customers, and testifies to the reliability of the company. The main financial partners of the institute are OJSC URALSIB and OJSC Rosbank. The Bank maintains correspondent relations with foreign institutions such as:

• Deutsche Bank Trust Company Americas in America.
• Deutsche Bank AG in Germany.
• Commerzbank AG in Germany.
• VTB BANK in Denmark.
• AG in Germany.

JSC Bank ROST is a member of the Moscow International Currency Association andAssociation of Russian Banks, is a member of the international payment systems Visa International and MasterCard International, participates in trading on the Moscow Currency Exchange and MICEX.

What happened in 2014?

The bank's ideal history has not always been smooth and quiet. Quite recently, there was a real scandal, which, fortunately, ROST Bank managed to cope with with insignificant losses. Problems with the Central Bank began when in 2014 the introduction of a limit on the issuance of deposits was recorded. The financial institution paid its depositors no more than 30 thousand per month. People went to branches day after day to collect their savings.

The situation attracted the attention of the Central Bank of the Russian Federation and due to the fact that "ROST Bank" of Rostov-on-Don fell sharply in the rating of the international agency Standard & Poors, and not by several positions, but to the level of the pre-default state. The DIA appointed a regulator to the financial institution, which, in the course of assessing the situation, revealed facts of illegal lending, which led to very serious problems.

Who is causing the problems?

Almost officially, Alexei Korneshov was named the culprit of the collapse of the financial system. The shareholder of OJSC ROST Bank initiated the problems of 2014 with his schemes of fraud. About his father, who was previously the head of the Moscow State Technical University, and about him himself have already been repeatedly written in the domestic media, including state media, as people who not only destroy financialinstitutions, but also endangering the entire financial system of the state. The shareholder of OJSC ROST Bank, whose problems arose for a reason, was previously a co-owner of Sibeconombank, which lost its license due to various violations back in 2007, and a shareholder of BFT Bank, which also has not had a license since 2013.

Despite rumors, sanitation took place

After the implementation in the "ROST Bank" of Rostov-on-Don and in branches in other cities of the provisional administration, active talks about reorganization began. Messages about the liquidation of the financial institution appeared in the media. According to the latter, all the banks of the group will be subject to sanation: OAO AKKOBANK and OAO Tveruniversalbank, OAO SKA-Bank and OAO Kedr, OAO BaikalInvestBank.

At the conference, the representative of OJSC "ROST Bank" did not describe the problem in detail, but only stated that there would be no reorganization. The Bank maintains fruitful cooperation with the Central Bank and considers active measures for self-improvement. In addition, information was provided that ROST Bank will solve the problems of 2014 intensively, and first of all in order to fulfill all obligations to customers, whose total deposits as of November 1, 2014 amounted to about 40 billion rubles. Despite the statement of the representative of the financial institution, the reorganization and strict adherence to the plan for restoring liquidity began. Today, the financial institution is flourishing again, and already in 2017 it is planned to bring ROST Bank in Rostov-on-Don and branches in other cities to a higher level.

How did the bank's clients suffer during the troubles in Rostov-on-Don?

At the time of problems with the Central Bank, not only the clients of the Moscow branch, but also of all branches suffered. For example, people cooperating with Rostov-on-Don OJSC ROST Bank were not able to make money transfers. All settlement transactions were suspended. Couldn't even process incoming payments. It is quite obvious that there could be no talk of withdrawing cash. OJSC "ROST Bank" of Rostov-on-Don, however, like other branches, remained in limbo until the decision was made by the regulator and the temporary administration. The clients didn't even know if they would ever be able to get their deposits back. People could not even withdraw their salary funds from their cards and could not receive transfers from abroad. Almost all services of the financial institution were blocked. Nobody made any predictions. Fortunately, Bin Bank took over the rehabilitation of the institution under certain conditions, which, in accordance with the bank's rehabilitation plan, will absorb it in 2020. ROST Bank is not experiencing any problems now, it is steadily trying to pay all its depositors their savings.

Remediation implementation

As mentioned above, the reorganization of the financial institution was entrusted to "Bin Bank". He will also be responsible for the 5 banks of the group, which were mentioned above. It should ensure not only the elimination of difficulties, but also the further development of ROST Bank OJSC.

Problems are planned to be eliminated through financing in the amount of 35.9 billion rubles. Of this amount, 18.4 billion will be provided at 0.51% per annum for a periodfor 10 years. Another 17.5 billion were issued at 6.01% per annum for a period of six years. ROST Bank undertakes to solve its problems not only through refinancing, but also through a complete restructuring of the government apparatus. All actions will be strictly controlled by the Central Bank Commission. A rigid framework for banking operations is a prerequisite for rehabilitation. It can be said that ROST Bank solved the problems with the Central Bank almost completely, now it remains to justify the trust placed in it.