Declared a “systemically important bank” by Russia’s central bank in 2017, and one of the country’s largest lenders, Credit Bank of Moscow (CBM) in the early 2010s embarked on an remarkable growth trajectory, gaining considerable momentum on the back of two distinct qualities: the ability to quickly adapt to changing market conditions and the determination to adhere to sensible, if not refreshingly conservative, standards of corporate governance. Interestingly, the bank’s go-by-the-book approach not only strengthened to bottom line but also allowed CBM to increase its market share and accumulate a first-rate loan portfolio.
CBM has been particularly successful in attracting deposits from big corporate clients. Widely recognised as a safe haven in times of trouble, CBM has grown quickly by leveraging its reputation – one backed up by solid numbers and the policies that underpin them. Having stringent internal policies and excellent reputation among the international financial community, the Bank has been extremely successful in raising international funding, having gained leading positions among CIS financial institutions on international debt capital markets in 2017 and 2018.
Set up in 1992, CBM has prioritised corporate governance from its earliest corporate beginnings, proactively engaging all stakeholders – shareholders, customers, staff, and regulatory entities. The bank improves its corporate governance system on an ongoing basis in line with legal changes and best practices, both Russian and international ones. The bank’s internal and external operations, processes, and dealings benefit from full transparency. CBM’s ten-seat supervisory board includes five independent members and two who represent the interests of small shareholders. CBM has received strong support, and assistance, from large multilateral financial institutions for the design, implementation, and monitoring of its corporate governance code. The bank also invited these institutions to appoint seasoned experts to a seat on its supervisory board. CBM’s Supervisory Board has also appointed a dedicated high profile professional to advise particularly on corporate governance development and further improvement.
The CFI.co judging panel agrees that Credit Bank of Moscow represents a hallmark of quality in corporate governance. The bank’s dedication to openness and excellence in both operations and governance has built a financial powerhouse. The judges are pleased to declare Credit Bank of Moscow winner of the 2018 Best Banking Corporate Governance Russia Award.