MDM Bank
Encyclopedia
MDM Bank is a Russia
n Joint Stock
commercial bank
, one of Russia
's largest private banks based in Novosibirsk
. As of August 2009, the bank completed a merger
with Novosibirsk
-based URSA Bank. The new bank will operate under MDM Bank brand name as an Open Joint Stock Company, but the merger is actually structured as an acquisition of MDM by URSA. The new corporate headquarters will be based in Novosibirsk. The merger was announced in December 2008; MDM and URSA estimated that the new MDM Bank would have capital of 2.5 billion and total assets of 18.7 billion US dollars, although in practise the numbers ended up being somewhat lower.
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.
MDM Bank was founded 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). 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 (Ba1, stable) – and is the only Russian financial organization that has been given a public corporate governance rating by Standard & Poor's (6+).
URSA Bank was founded in 1990 as Sibakadembank by the Siberian Branch of 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 Siberia
n banks, in 2006 Sibakadembank merged with Yekaterinburg
-based Uralvneshtorgbank (established 1991) and assumed the new name, URSA Bank.
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
n Joint Stock
Joint stock company
A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...
commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
, one of Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
's largest private banks based in Novosibirsk
Novosibirsk
Novosibirsk is the third-largest city in Russia, after Moscow and Saint Petersburg, and the largest city of Siberia, with a population of 1,473,737 . It is the administrative center of Novosibirsk Oblast as well as of the Siberian Federal District...
. As of August 2009, the bank completed a merger
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
with Novosibirsk
Novosibirsk
Novosibirsk is the third-largest city in Russia, after Moscow and Saint Petersburg, and the largest city of Siberia, with a population of 1,473,737 . It is the administrative center of Novosibirsk Oblast as well as of the Siberian Federal District...
-based URSA Bank. The new bank will operate under MDM Bank brand name as an Open Joint Stock Company, but the merger is actually structured as an acquisition of MDM by URSA. The new corporate headquarters will be based in Novosibirsk. The merger was announced in December 2008; MDM and URSA estimated that the new MDM Bank would have capital of 2.5 billion and total assets of 18.7 billion US dollars, although in practise the numbers ended up being somewhat lower.
Igor Kim, chairman and shareholder of URSA, has been the new bank's chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
during the transition period; Oleg Vyugin
Oleg Vyugin
Oleg Vyacheslavovich Vyugin was the Head of the Federal Financial Markets Service of Russia.-Education and early career:...
chairs the board of the bank's holding company and the former MDM CEO Igor Kuzin is chief executive of the holding company.
MDM Bank was founded 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). It had one of the highest credit ratings among privately-owned Russian banks – Standard & Poor's (BB, stable), Fitch Ratings
Fitch Ratings
The Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....
(BB, stable) and Moody's (Ba1, stable) – and is the only Russian financial organization that has been given a public corporate governance rating by Standard & Poor's (6+).
URSA Bank was founded in 1990 as Sibakadembank by the Siberian Branch of 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 Siberia
Siberia
Siberia is an extensive region constituting almost all of Northern Asia. Comprising the central and eastern portion of the Russian Federation, it was part of the Soviet Union from its beginning, as its predecessor states, the Tsardom of Russia and the Russian Empire, conquered it during the 16th...
n banks, in 2006 Sibakadembank merged with Yekaterinburg
Yekaterinburg
Yekaterinburg is a major city in the central part of Russia, the administrative center of Sverdlovsk Oblast. Situated on the eastern side of the Ural mountain range, it is the main industrial and cultural center of the Urals Federal District with a population of 1,350,136 , making it Russia's...
-based Uralvneshtorgbank (established 1991) and assumed the new name, URSA Bank.