The history of the Northern Credit Bank from Vologda is notorious for many Russians. The scandal with the closure of bank branches in 2017 was a surprise for 56 thousand residents of Vologda. The press paid special attention to the bankruptcy of the Northern Credit, as the Government of Vologda was one of the main investors of the credit organization. Independent experts and journalists suspected members of the Government of conspiring with the leadership of the bank. What happened to Nordic Credit?
Bank financial problems
Opened in Arkhangelsk in 1993, the Northern Credit Bank did not experience serious financial difficulties until 2017. Asset problems began after the arrival of the new management. Acting as Chairman of the Management Board Sergey Krylov and his team, which actually managed the bank, did everything to make Northern Credit bankrupt.
With a change in the composition of the Management Board, the bank’s assets decreased to a critical value of 1.5% (the minimum size at the request of the Central Bank should be at least 2%). Prior to this, in 2014, Northern Credit was in the top 250 of Russia in terms of assets (239th place with a share of 7.6 billion rubles).
Regional support
Clients of the bank did not know about the financial problems of the lender, as the bank "Northern Credit" in Vologda fulfilled its obligations. Of particular trust among citizens was the fact that the bulk of the shares (over 23) belonged to the Government of the Vologda Oblast.
The acquisition of shares in the amount of more than 410 million rubles (in total) took place in 2010-2011. At that time, the government was headed by V.E. Pozgalev, ex-governor of the region (1996-2011).
Active financing of a bank for such a large amount is an unusual distribution of the regional budget. Pozgalev argued his decision "investment in long-term assets of a reliable company." At that time, the North Credit Bank in Vologda was popular among citizens, and it did not require such impressive preventive measures.
Bankruptcy Suspicions
The prerequisites for the loss of liquidity of the Northern Credit appeared only in December 2017. But already in 2013-2014. The media repeatedly slipped information about dubious schemes in which the bank's management was noticed. Suspicions restrained the fact of the presence of a large financial share from the regional budget and the possession of the Government of the Vologda Oblast by 23% of the company's shares.
Therefore, residents of Vologda and other regions did not think about a possible collapse of the lender until the ATMs of the Northern Credit stopped issuing cash worth over 5 thousand rubles. The restriction was established on December 17, 2017. And 12 days after a shortage of cash in the terminals, the license of the Northern Credit Bank in Vologda was revoked.
Deterioration of the situation in the bank branches
With a cash withdrawal limitation, Northern Credit only “scared” its customers. Real problems began with depositors after December 25th. A week after a failure with ATMs, bank managers refused to accept payments, open accounts and issue funds from deposits.
On December 29, 2017, the license of the Northern Credit Bank in Vologda was revoked. Unlike most lenders, employees began to notify depositors in advance of financial difficulties. Preventive measures of bank employees allowed more than 39% of customers to withdraw their money before revoking the license.
Reasons for the revocation of the license from the Northern Credit
Clients of bankrupt banks always want to know what caused the financial collapse. Why the license of Severny Credit Bank was revoked from Vologda, now more than 50 thousand Vologda residents know.
The prerequisites for the ruin were fraudulent actions by the bank's management. In December 2017, management members intervened in an illegal asset withdrawal scheme.
Regarding the legality of the deal on the sale of shares of the Northern Credit, police officers also had questions to the ex-governor. An investigation was conducted into the irrational use of the state budget, since before the acquisition of bank shares their price unexpectedly “soared” 3 times.
The license of the Northern Credit Bank in Vologda was revoked on December 29, 2017. The main reason indicated is the fact of non-compliance with the requirements of the legislation regarding the implementation of banking activities in the Russian Federation.
What happened to investors?
More than 43 thousand depositors after the revocation of the license from the bank "Northern Credit" were left without their investments. Responsibility for the return of funds was undertaken by the state company "Deposit Insurance Agency" as a bankruptcy trustee.
According to estimates of the Central Bank, Northern Credit owed 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 for an insured event (revocation of a license from a financial institution).
Where can depositors of Severny Kredit Bank get money?
Payments were controlled by the DIA. Refunds to depositors of bankrupt banks were refunded to agent banks designated by the Deposit Insurance Agency company.
One of the agents in the region is Sberbank. The list of branches with addresses and operating modes in which you can apply for insurance compensation is presented in the photo.
In addition to Sberbank, customers of Northern Credit can contact the last working office. It is located on the street. Mira, d. 1.
At the bank’s office, depositors can apply for a refund or pay a consumer loan without a commission.
Obligations of borrowers after revoking a license from a bank
If depositors, having learned about the bankruptcy of the company, frantically try to return their invested money in any way possible, then the borrowers hope that the bank will “forget” about their debt. But revoking a license is not a reason to stop paying on credit obligations.
According to the law, if a license is revoked from the Bank North Credit in Vologda, the insurer assumes obligations to control the loan. Since 2014, it has been the DIA.
Borrowers of the Bank "Northern Credit" must make cash on credit according to the previously issued schedule. During the bankruptcy period (December 20-29, 2017), customers might have difficulty paying on their loan account. Therefore, during the bankruptcy procedure and the revocation of a license from a company, penalties and fines for borrowers are not charged (or canceled after their preliminary accrual).
Having learned what happened to the Northern Credit Bank in Vologda, not all payers are aware of the account to which money should be transferred for loans. Information is located and regularly updated on the DIA official website in the "Bank Liquidation" ("Northern Credit") section.
Customer Contact Information
To contact the specialists of the Agency "Deposit Insurance", you can use several options. The telephone number of North Credit Bank in Vologda is not indicated on the DIA website, but customers can call a dedicated line for depositors.
For letters, a mailing address is provided in the capital (127055, Moscow, Lesnaya St., 59, p. 2) and the region (160009, Vologda, Chekhov St., 30).
Clients of Northern Credit Bank in Vologda can send a notification and ask questions of interest by e-mail.