Establishment and Recognition, 1990-1994

 

The Bank for Foreign Trade (Vneshtorgbank) was established in October 1990 with support of the State Bank of the RSFSR and the Ministry of Finance of the RSFSR to  service Russia’s foreign economic transactions and encourage the country’s integration in the world economy. The Bank’s head office was located in Kuznetsky Most, Moscow, in a beautiful old building of the early 20th century, constructed by a well-known architect, Adolph Erichson.

General License No. 1000 granting the right to conduct all types of banking transactions in Russian Rubles and in a foreign currency was issued to VTB on January 2, 1991. The Bank’s business lines included servicing and funding entities engaged in foreign economic activities, making international settlements and interbank operations, as well as precious metal trading.

VTB was soon recognized by the world’s leading banks as a full-fledged player in the international banking services market. In November 1991, VTB was among the first Russian banks to join SWIFT (The Society for Worldwide Interbank Financial Telecommunication) and to service international payments in real time. VTB was also the first Russian bank to open a Euroclear account and launch operations in the international securities market.

It took VTB less than two years to cover the globe with its correspondent network. Close business relations were established with over 200 leading banks in Europe, America, Asia, Africa and Australia. The world’s leading banks and export insurance agencies from developed economies began to accept VTB’s guarantees and other liabilities. At that time the Bank serviced up to one-third of Russia`s total foreign trade turnover.

In order to expand its activity in international financial markets, VTB:

• founded Russian Commercial Bank in Zurich (Switzerland);
• became a shareholder of Donau-Bank (Austria);
• opened several foreign representative offices, including those in Italy, India and China.

VTB’s vigorous activity in Russia permitted it to join the top 5 largest banks in the country and become a leading Russian currency market maker, taking an active part in developing its infrastructure. When VTB became a large operator of the government liabilities market, it launched the process of creating its own depository and clearing house.

Players in the Russian financial market recognized VTB as the most reliable and capitalized bank in the country. Besides, in 1994, it was ranked 425th in the list of Top 1000 world banks by The Banker magazine.

VTB was put in charge of handling important government tasks. The Bank was appointed the government’s agent for raising and servicing external loans related to funding large investment projects, and was also granted the exclusive right to sell precious metals in the external market on behalf of the Russian Government and the Bank of Russia. VTB was also in charge of servicing the Republican Currency Reserve of the Russian Federation and the Stabilization Currency Fund of the Bank of Russia.

Quality and Reliability, 1995-1998 >