Rossiysky Kredit

Rossiysky Kredit (OJSC Bank Rossiysky Kredit) (Russian: Российский кредит) was a Russian commercial bank that ceased operations on July 24, 2015, when the Central Bank of Russia withdrew the bank's license.[1][2][3]

Rossiysky Kredit was established as a mutual bank in 1991 by ex-Prime Minister of Georgia, billionaire Bidzina Ivanishvili and his partner, former Russian Federation Council member Vitaly Malkin.[3] By 1996, it was the seventh largest bank in Russia, as measured by assets.[4] In 1997 it was converted into a joint stock company. Because of the 1998 Russian financial crisis, Rossiysky Kredit became insolvent and lost much of its deposits.[5] In 1999 the bank came under the control of the Agency for Restructuring Credit Organizations (ARKO, the predecessor of the Deposit Insurance Agency of Russia). In 2003 Rossiysky Kredit emerged from restructuring and passed out of ARKO control. In 2011, Rossiysky Kredit became part of the Russian bank deposit insurance system. In 2012, Bidzina Ivanishvili sold 99.61% of shares in the bank to a group of investors headed by Anatoly Motylev.

Examinations carried out on the eve of the Central Bank's license revocation found that the bank's funds were applied in the interests of owners and related companies, and that more than half of the loan portfolio consists of doubtful debt.[3] The State's costs arising from the bank failure is estimated at 57 Billion Rubles, making it the fifth most costly Russian bank default.[3]

References

  1. ↑ "Ъ-Новости - Центробанк подал в суд заявления о банкротстве банков «Российский кредит» и АМБ (Central Bank files bankruptcy petition against banks "Rossiysky Kredit" and AMB)". Kommersant. 9 August 2015.
  2. ↑ "Книга памяти: «ОАО «Банк Российский Кредит»» (Memory Book: "JSC" Rossiysky Kredit Bank, The Banki.ru)". www.banki.ru. Retrieved 2016-03-23.
  3. 1 2 3 4 "Оздоровительные процедуры: рейтинг банков, на спасение которых государство потратило максимальные суммы (Ranking defaulted banks on which the government has spent the largest amounts)". Forbes Magazine Russia Edition. Retrieved 2016-03-23.
  4. ↑ Johnson, Juliet (2000). A Fistful of Rubles: The Rise and Fall of the Russian Banking System. Cornell University Press. p. 109 – via Google Books.
  5. ↑ Ippolito, Filippo (2002). "The Banking Sector Rescue in Russia" (PDF). Bank of Finland Institute for Economies in Transition. p. 8.
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