ROST Bank OJSC, which experienced problems back in 2014, is currently a successful financial institution, which is actively supported by the domestic government. The central office of the bank is located in Moscow. Branches are available in different parts of the country, including in Rostov-on-Don and Orel, in Murmansk and Ryazan, in Tver and Saratov, in many other settlements. The authorized capital of the institute is 2,375,139,760 rubles.
Back to history
“Bank ROST” appeared back in 1994 and was known at that time as the bank “Kazan”. In 2004, the legal form of a financial institution was changed from LLC to OJSC. In 2013, as a result of the merger of the Rost and Kazan banks, a financial institution was formed, known today as ROST Bank. On the account of the credit institution today there are about 40 thousand individuals and 3 thousand legal entities. 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 to open branches in the country and abroad.
Financial policies and priorities of a banking institution
ROST Bank OJSC (liquidity problems in 2014, unfortunately, were very serious) throughout the history of its existence, has always chosen the interests of clients as its 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 a long cooperation with each client.
The organization’s development strategy is notable for its strict conservatism. The work is carried out exclusively in the real sector of the economy. The service of the bank is in constant dynamics, with the development of technologies it is being modernized and improved. A financial institution has an active credit policy, constantly and confidently expanding its portfolio.
Reliable partner
ROST Bank Rostov-on-Don, as well as branches in Moscow and St. Petersburg, is a member of REUTERS and SWIFT systems. This opens up the possibility of providing customers with international translation services, testifies to the reliability of the enterprise. The main financial partners of the institute are URALSIB OJSC and Rosbank OJSC. The Bank maintains correspondent relations with such foreign institutions as:
- Deutsche Bank Trust Company Americas in America.
- Deutsche Bank AG in Germany.
- Commerzbank AG in Germany.
- VTB BANK in Denmark.
- AG in Germany.
OJSC “Bank ROST” is a member of the Moscow International Currency Association and the Association of Russian Banks, is a member of the international payment systems Visa International and MasterCard International, and participates in trading on the Moscow Currency Exchange and MICEX.
What happened in 2014?
The ideal history of the bank did not always develop smoothly and quietly. More recently, there was a real scandal, which, fortunately, with minor losses ROST Bank managed to cope. 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 investors no more than 30 thousand per month. People went to departments every day to collect their savings.
The situation attracted the attention of the Central Bank of the Russian Federation 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 a few positions, but to the level of a pre-default state. DIA appointed a regulator to the financial institution, which during the assessment of the situation revealed the facts of illegal lending, which led to very serious problems.
Who is the cause of the problems?
Almost officially, the culprit of the collapse of the financial system was named Alexey Korneshov. 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 MSTU, and about himself, he was repeatedly written in the domestic media, including state ones, as individuals who not only destroy financial institutions, but also jeopardize the entire financial system of the state. The shareholder of OJSC “ROST Bank”, whose problems appeared for a reason, was previously a co-owner of Sibeconombank, which had lost its license due to various kinds of violations back in 2007, and a shareholder of BFT Bank, which also has not been licensed since 2013.
Despite rumors, the reorganization took place
After Rostov-on-Don was introduced into ROST Bank and into branches in other cities of the interim administration, active discussions began about reorganization. Messages about the liquidation of a financial institution appeared in the media. According to the latter, all banks of the group will be rehabilitated: AKKOBANK OJSC and Tveruniversalbank OJSC, SKA-Bank OJSC and Kedr OJSC, BaikalInvestBank OJSC.
At the conference, the representative of ROST Bank OJSC did not begin to describe the problems in detail, but merely stated that there would be no reorganization. The Bank maintains fruitful cooperation with the Central Bank and considers active measures for independent recovery. In addition, information was provided that ROST Bank will solve the problems of 2014 intensively, and in the first place 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, reorganization began and strict adherence to the liquidity recovery plan. Today, the financial institution is flourishing again, and already in 2017 it is planned to bring ROST Bank of Rostov-on-Don and branches in other cities to a higher level.
How did the bank's clients suffer during the period of problems in Rostov-on-Don?
At the time of problems with the Central Bank, clients suffered not only from the Moscow branch, but also from all branches. For example, people who collaborate with Rostov-on-Don OJSC ROST Bank did not have the ability to make money transfers. All settlement transactions have been suspended. It was not even possible to process incoming payments. It is quite obvious that there was no question 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 provisional administration. Customers did not even know if they could ever return their deposits. People could not even withdraw salary funds from cards and could not receive transfers from abroad. Almost all the services of a financial institution were blocked. No one gave any predictions. Fortunately, Bin Bank, which, in accordance with the bank’s rehabilitation plan, will absorb it in 2020, is engaged in the reorganization of the institution on certain conditions. ROST Bank is not experiencing problems now; it is steadily trying to pay their savings to all its depositors.
Remediation
As mentioned above, the reorganization of the financial institution was entrusted to Bin Bank. He will be responsible for 5 banks of the group mentioned above. It should ensure not only the elimination of difficulties, but also the further development of OJSC ROST Bank.
The problems are planned to be eliminated by 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 period of 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 governing apparatus. All actions will be tightly controlled by the Central Bank Commission. A tight framework for banking operations is a prerequisite for rehabilitation. We can say that ROST Bank solved the problems with the Central Bank almost completely, now it remains to justify the trust placed in it.