MDM Bank

MDM Bank (Russian: Московский Деловой Мир (МДМ-Банк, МДМ Банк), literally meaning "Moscow Business World Bank" in English), is a former Russian joint stock commercial bank, one of Russia's largest private banks originally based in Moscow (1993-2009), then merged renamed and moved to Novosibirsk (2009-2016)[1] MDM and URSA estimated that the new MDM Bank would have capital of US$2.5 billion and total assets of US$18.7 billion, although in practice the numbers ended up being somewhat lower.[2]

MDM Bank
TypeOJSC
IndustryFinance and insurance
Founded2009
HeadquartersNovosibirsk, Russia
ProductsFinancial services
Number of employees
5000

History
Former original MDM Bank in Moscow, 1993-2009

The original MDM Bank was founded in Moscow in December 1993 and holds a General Banking License issued by the Central Bank of Russia (#2361 dated 13 February 2003, which will be voided as the bank migrates under URSA Bank license #323).[3] It had one of the highest credit ratings among privately owned Russian banks – Standard & Poor's (BB, stable), Fitch Ratings (BB, stable) and Moody's (B1, negative) – and is the only Russian financial organization that has been given a public corporate governance rating by Standard & Poor's (6+).

Igor Kim, chairman and shareholder of URSA, has been the new bank's chief executive officer during the transition period; Oleg Vyugin chairs the board of the bank's holding company and the former MDM CEO Igor Kuzin is chief executive of the holding company.[1]

On February 15, 2012, MDM rehired Kuzin as CEO.

URSA Bank was founded in 1990 as Sibakadembank by the Siberian Division of the Russian Academy of Sciences. It was restructured from a privately held bank to a joint-stock bank in 1997. After a series of mergers with local Siberian banks, in 2006 Sibakadembank merged with Yekaterinburg-based Uralvneshtorgbank (established 1991) and assumed the new name, URSA Bank.

In 2016 MDM merged with another Russian lender, B&N Bank. This new entity now ranked in the top 10 of all Russian banks, and the top five for private lenders. In 2017 the newly merged entity required a bailout by the Russian Central Bank.

In 2018 Irish economist Cillian Doyle revealed that prior to MDM's merger and subsequent collapse, the bank had used a series of offshore vehicles located in the Irish Financial Services Center (IFSC) and Malta, as part of a scheme to create fictitious assets on its balance sheet in addition to hiding losses.[4]

References
  1. "Russia's MDM, Ursa Merge as Credit Crisis Deepens". Bloomberg. December 3, 2008. Archived from the original on February 12, 2011. Retrieved 2009-06-18.
  2. "Capital from MDM-Bank, URSA merger to reach $2.5 bln". RIA Novosti. December 3, 2008. Archived from the original on February 12, 2011. Retrieved 2009-06-18.
  3. "MDM Bank EGM Approves Merger with URSA Bank". MDM Bank. May 8, 2009. Archived from the original on February 12, 2011. Retrieved 2009-06-18.
  4. "Fictitious Assets, Hidden Losses and the Collapse of MDM Bank". www.counterpunch.org. Retrieved 2018-11-17.
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