MDM Bank

The bank provides a range of services in the main sectors of the market of financial services, including retail banking, service of small and medium business, corporate, leasing and investment banking services. The regional network of bank contains 215 departments in 110 cities of Russia, more than 12,000 ATMs (including ATMs of partner banks). The bank services 3.5 million individuals and also 70,000 corporate clients and clients of small and medium business. The bank has the general banking license of the Central Bank of the Russian Federation on banking operations No. 323 of 12/5/2012.

Owners

According to the list of affiliates of December 31, 2014 of 57.5% of authorized capital of MDM Bank the Cyprian MDM Holding possesses, 9.7% — MDM Management Company LLC, 1.2% — the Cyprian Layline Investments Limited.

The largest international financial institutions – the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) are among shareholders of bank.

Performance Indicators

MDM Bank at the end of 2014 took the 25th place by the amount of assets in the ranking Interfax-100 prepared by Interfax-CEA.

History

2016

MDM Bank will be renamed into B&N BANK

At the extraordinary general meeting of shareholders of B&N BANK and MDM Bank which took place on October 7, 2016 the scheme of legal consolidation of two banks is approved: The B&N BANK joins MDM Bank, at the same time the united bank continues to work under a brand of B&N BANK.

The choice of this option is caused by the fact that it will allow to complete consolidation process as fast as possible. For that time while the B&N BANK attached other banks of group, MDM Bank was prepared for that on its balance (license) to complete creation of the joint credit institution.

In 2016 in Group of B&N BANK a number of labor-consuming projects on technology integration and legal consolidation was implemented. Three banks were attached to B&N BANK: "Cedar", Smolensk B&N BANK and Surgut B&N BANK. In November, 2016 it is going to complete accession to B&N BANK of one more credit institution – "B&N BANK Tver". In the first quarter 2016 the compound technology integration of B&N BANK and its card "daughter" – "B&N BANK credit cards" (this bank continues to work as the independent legal entity, but from the technology point of view it is completely integrated into B&N BANK) was implemented.

2015

Failure in work because of the burned-down equipment

At the beginning of October, 2015 there was a failure in work of banking systems of MDM Bank. The company reported that problems are connected with the burned-down equipment in data center.

According to Vedomosti with reference to the representative of MDM Bank, on October 6, 2015 processing ceased to work within four hours. On October 7 cards did not work, and next day a system functioned with interruptions 10-15 minutes. One of holders of cards of MDM Bank said that its card, the Internet bank and mobile bank do not work since October 4. One more client of bank specified to the edition that it cannot not only pay off with the card, but also withdraw money in the ATM.

Cards of MDM Bank did not work several days

According to the call center agent of MDM Bank, on October 6, 2015 because of voltage surge in a data processing center "a part of technical means burned down". By the evening on October 8 work of a processing center returned to the normal mode, assured of the company.

Technical failure in MDM Bank was rather resonant event as the company has about 3.5 million clients among whom there is a Pension Fund of the Russian Federation (the salary project). According to the partner of Tertychny Law Ivan Tertychny, appeal to the court in connection with an incident will hardly lead to payment of compensation commensurable with the spent forces and time for such legal procedure.

The bank can state, for example, that the card holder could reach to bank department and withdraw money in cash desk, so, was not deprived of access to the means. Even if this argument will be unconvincing for court, the amount of payments to injured clients of MDM Bank will be small as money only got stuck for several days, but did not disappear absolutely.^[1]

Shishkhanov and Gutseriev acquire MDM Bank

Shareholders of Mikail Shishkhanov B&N BANK and Mikhail Gutseriev signed in the summer of 2015 the agreement on acquisition of a controlling stake (58.33%) of MDM Bank at Sergey Popov. Within the transaction of 100% of stocks of MDM Bank are estimated by the parties at the level of near capital of credit institution.

Mikail Shishkhanov who at the moment is a president, the chairman of the board of B&N BANK will become the chairman of the board of MDM Bank. At the same time the position of the president of B&N BANK will be held by Alexander Lukin who is a senior vice president of B&N BANK now.

Transfer of head office from Novosibirsk to Moscow

In February, 2015 it became known that MDM Bank transfers head office from Novosibirsk to Moscow, in Novosibirsk creates branch. The relevant decisions were made at extraordinary meetings of shareholders in January, 2015.

Before the bank was registered in Novosibirsk though control was exercised of it from Moscow.

2008: Consolidation with URSA Bank

On December 3, 2008 shareholders of MDM Bank and URSA of Bank announced intention to integrate the shares in bank holding for creation of one of the leading private universal banks of Russia. On August 10, 2009 it was announced that process of consolidation took place.

Awards

In 2006 the Global Finance magazine recognized MDM Bank the best bank in Russia in 2006 in four nominations:

• corporate management;
• FOREX;
• the best organizer of eurobond issues in the Russian market;
• the best consultant for transactions of merges and absorption in the Russian market.

Notes