Powers of Bank Otkritie’s current management expire on 31 December 2022
Beginning from 1 January 2023, Bank Otkritie Financial Corporation (Public Joint-Stock Company) will be fully transferred under the operational control of the team of its new owner — VTB Bank (PJSC). The new supervisory board of the credit institution was formed on 26 December 2022. Now, it does not include Bank of Russia representatives.
The Bank of Russia made the decision on the financial resolution of Bank Otkritie and B&N Bank in 2017. By that moment, the banks’ business models had become completely non-functional, while their management teams and owners had been concealing their problems using various schemes. The financial resolution of the banks has protected the interests of their clients — both businesses and households.
A key objective of the financial resolution was to form a resilient financial institution based on these banks so that, later on, the Bank of Russia could divest from the bank. Bank Otkritie has become the basis for such new institution, and B&N Bank was then merged into Bank Otkritie that started to control the banks’ insurance and pension business after their financial resolution.
The relaunch of Bank Otkritie was carried out by the team headed by Chairman of its Management Board Mikhail Zadornov. Over the five years, the team was able to implement a comprehensive project, which was unprecedented for the Russian financial system, and establish an efficient and competitive bank. In December 2022, Bank Otkritie was sold to VTB Bank for 340 billion rubles.
Summing up the results of the work done by the Bank Otkritie team, Bank of Russia Governor Elvira Nabiullina said: ‘Mikhail Zadornov and the bank’s management have done a great job. The team has ensured a high quality of governance and elaborated a strategy that has enabled the Central Bank as a shareholder to fulfil its obligations to society and sell the bank on market terms this year. The bank’s management team has demonstrated professional excellence, using its best efforts to achieve the goal and create an efficient modern bank. This project was by no means simple, we had to address multiple challenges along the way, including this year, when the bank was one of the first to be sanctioned. Nevertheless, the team has managed to cope with these challenges properly, close the year with profit, and simultaneously implement the measures scheduled within the strategy. I would like to thank the Bank Otkritie team for its job and hope that the experience you have acquired will help you in the implementation of your future plans and projects.’