The Bank of Moscow name will gradually disappear from Russia's streets amid a brand redesign of the troubled lender by state-controlled owner VTB, Russia's Kommersant newspaper reported Monday, citing unidentified sources at the bank.
The Bank of Moscow brand — which has existed since 1994 — will be ditched during the course of the next year in favor of the name M Bank, according to Kommersant.
Once Russia's fifth-largest financial institution, Bank of Moscow received a $14 billion bailout in 2011 after some of its senior managers fled Russia to avoid criminal charges in the wake of a hostile takeover by VTB.
Bank of Moscow's healthy assets will be fully transferred to VTB by May 2016, while toxic assets will remain within a structure named M Bank, Kommersant reported.
The renaming process will begin in October and last up to a year, according to Kommersant.
VTB reportedly intended to absorb Bank of Moscow shortly after the takeover, but faced Central Bank opposition because the move would have meant it was in violation of standards demanded by Basel banking accords.
Set up in the early 1990s, Bank of Moscow was closely linked to former Moscow Mayor Yury Luzhkov and the business empire of his wife, Yelena Baturina. Bank of Moscow currently has 9 million private customers and 120,000 corporate clients, with branches all over Russia, according to its website.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
