PJSC MezhTopEnergoBank was among the top 110 Russian banks in terms of capital in 2017. But in July 2017, the Central Bank revoked the license from a capital lender, which came as a surprise to tens of thousands of Moscow residents. The revocation of the MezhTopEnergoBank license entailed the dissatisfaction of customers who did not manage to withdraw funds from bankrupt accounts.
A little bit about the history of the bank
Formerly known as AOOT Interregional Fuel and Energy Bank, MezhTopEnergoBank acted mainly as a lender to enterprises in the fuel and energy and gas-industrial regions of Russia. The bank's activities in the field of lending to customers of the energy sectors lasted from 1994 to 1998.
Later, Moscow MezhTopEnergoBank began to expand its activities. The beginning was the introduction of new products to the retail market. Since 2007, additional offices of MezhTopEnergoBank began to appear in the Moscow region and other regions of the country (for example, Novosibirsk).
From 2010 to 2011 OJSC Alemar Bank was gradually introduced into the MezhTopEnergoBank group. In 2017, six months before the revocation of the MezhTopEnergoBank license, the lender was one hundred and eighth in the country in terms of assets. In the capital, MezhTopEnergoBank was one of the hundred largest banks in the region.
Beginning of difficulties
MezhTopEnergoBank began to experience asset problems only in 2017. At that time he was already one of the hundred best banks in Moscow and the region. The brand "MezhTopEnergoBank" was recognizable among residents of the capital. Branches functioned until July 2017 in other regions.
The difficulties that the public became aware of began on June 29, 2017. The media reported on delays in transactions through MezhTopEnergoBank. Bank employees denied the problem, but customers began to worry about their money invested.
On June 30, the number of applications for withdrawal of deposits increased thirteen times. Due to the influx of customers, the servers of MezhTopEnergoBank really began to experience technical problems, which intensified the mass unrest. Since July 4, in the branches, customers began to refuse to issue cash. MezhTopEnergoBank ATMs ceased to issue cash to cardholders.
What does the management say?
The comments of the members of the board of MezhTopEnergoBank regarding its bankruptcy are extremely interesting for depositors who were left without their investments and now are forced to return funds through insurance compensation from DIA. According to the management, the reasons for revoking the license of MezhTopEnergoBank PJSC were:
- Deterioration of the situation in the construction and investment sectors. MezhTopEnergoBank depended heavily on the market economy, as did all banks that provide loans to corporate clients. A decrease in activity in the construction sector led to a decrease in the volume of loans issued, which affected the interest income.
- An increase in arrears from a number of large borrowers led to a deterioration in liquidity.
- Transfer of refinancing of significant projects of MezhTopEnergoBank.
As leaders of MezhTopEnergoBank pointed out in their interviews, the reasons entailed a loss of reputation and customer confidence. This triggered a massive appeal for cash withdrawals at ATMs. Clients began to close accounts at offices.
A sharp decrease in own assets reached a critical level (less than 2 percent), but this did not prevent MezhTopEnergoBank from fulfilling its obligations in full until July 2, 2017. The license of PJSC MezhTopEnergoBank was revoked 18 days later, on July 20, 2017, by decision of the Central Bank.
Opinion of economists and independent experts
Specialists do not agree with the comments of the management of MezhTopEnergoBank regarding the reasons for the bankruptcy of the organization. Citizens who wrote reviews about the situation with the bank support the position of experts.
The revocation of the license from MezhTopEnergoBank is not related to the market situation in the country as much as the leaders of the financial organization tried to prove. The problems of a market economy in Russia did not begin in 2017, but immediately after the crisis in 2012. Banks that were able to overcome the crisis in the period from 2012 to 2016 are now in the top 100 in terms of assets in the Russian Federation.
MezhTopEnergoBank ranked one hundred and eighth in the Russian asset rating at the beginning of 2017. But already in March 2017, the financial problems of the company became apparent. Experts from the Central Bank are sure that the reason for the revocation of the MezhTopEnergoBank license was, first of all, investments in low-grade assets.
Reasons for revoking a license
Violations of the legislation of the Russian Federation, in particular, evasion of financial monitoring and fraud with large loans, also had a significant role in the collapse of the bank. Systematic failure to comply with the requirements of the legislation of the Russian Federation in the field of banking (non-compliance with the level of liquidity of assets, for example) led to the revocation of the license in 2017.
Since the beginning of 2017, MezhTopEnergoBank has periodically had problems in the credit sector. The absence of a high share of own assets forced management to issue loans for money that the organization did not have.
Working virtually at a loss, the lender hoped to return the level of liquidity at the expense of interest. This led to irrational credit policies. She is distinguished by a high percentage of approval of applications. MezhTopEnergoBank issued loans even to those companies that did not provide certificates of financial activity. The issuance of loans to unreliable borrowers led to an increase in the volume of overdue debt, which exacerbated the negative financial situation in the bank.
Government Regulatory Measures
The Central Bank has repeatedly introduced the monitoring procedure for MezhTopEnergoBank. But preventive measures did not improve the asset situation. According to the state regulator, management is responsible for revoking the MezhTopEnergoBank license.
During state inspections, cases of the withdrawal of large financial sums abroad were revealed. They could influence the interests of creditors. The illegal withdrawal of assets of MezhTopEnergoBank is equivalent to fraud (Article 159 of the Criminal Code of the Russian Federation).
The investigation of the bank's activities throughout 2017 resulted in the Central Bank revoking the license of MezhTopEnergoBank on July 20, 2017. The insurer - "Deposit Insurance Agency" acted as a bankruptcy trustee.
Customer Implications
More than 4/5 of the clients found out that the bank is experiencing financial difficulties only on June 30, when it suspended operations with individuals and legal entities. This has led to active attempts to withdraw cash from accounts.
But investors could no longer receive funds at the offices of MezhTopEnergoBank. Problems arose with the issuance of finance in the ATMs of the network.
Since the lender has been a member of the deposit insurance system since 2005, the bank's customers may not have to worry about amounts up to 1.4 million rubles. They are insured by the state.
Agent depositors can take cash depositors of the bankrupt MezhTopEnergoBank. The list of banks is on the official website of the "Deposit Insurance Agency".
How to get a refund?
If a bank that was part of the Deposit Insurance System from DIA has failed, customers should not despair. Amounts up to 1.4 million rubles will be fully reimbursed to them under the supervision of a state insurer.
The revocation of the MezhTopEnergoBank license forced Muscovites and residents of other regions to look for banks that became agents of the bankrupt lender. The contest "DIA" on the payment of deposits "MezhTopEnergoBank" won the representatives:
- Sberbank;
- Russian Agricultural Bank;
- Bank Uralsib.
In the branches of these financial organizations, borrowers can pay a loan without commission and expect to reimburse the sum insured.
In Novosibirsk, customers can receive a refund, including in additional branches of Otkritie Bank. Information about the revocation of the license of MezhTopEnergoBank in Novosibirsk is available on the branch’s official page. Among the agents are Rosselkhozbank and Otkritie.
Credit debt repayment at MezhTopEnergoBank
Borrowers of bankrupt banks are obliged to timely fulfill their obligations under loan agreements. Otherwise, they will face fines, penalties and poor credit history.
Borrowers of MezhTopEnergoBank are no exception. They must repay loans issued before bankruptcy according to the payment schedule. Details are presented on the website of the "Deposit Insurance Agency". When changing data on the "DIA" page, payers can find out where to transfer funds online.
Payment without commission can be made at Transcapitalbank.
Moscow office addresses:
- st. Oktyabrskaya, 36;
- trans. Dokuchaev, 5, p. 3;
- st. Regimental, 3, p. 4;
- st. Rowan, 55, p. 1;
- w. Warsaw, 138a.