A custody service presentation took place on 19 March on the occasion of 10-th anniversary of Vneshtorgbank`s custody business.
Over a hundred of representatives from banking institutions, custodians, management companies, privately owned pension funds, manufacturing, trade and export-import companies, and representatives from supervision authorities and mass media were invited to the presentation ceremony.
In making speeches, Alexei Akinshin, Senior Vice President and member of the Management Board of Vneshtorgbank, Alexei Smirnov, Executive Vice President and Dmitry Mozguin, head of the Custody Business Department traced the history of VTB`s custody business commencing from 1993, presented services and products of the Bank, including comprehensive commercial and personal banking, and outlined a strategic outlook for the Custodian of the Bank.
Vneshtorgbank is a major banking custodian in Russia rendering a full array of services in respect of all types of securities. Vneshtorgbank traditionally has commanded leadership positions in the market where Government foreign-exchange denominated bonds and global securities are traded. Over the last years, the Bank has focused on a top-priority line of business which is corporate securities business where balances on customer accounts opened with Vneshtorgbank throughout 2003 posted an almost a twofold growth.
Total Custodian`s customer base is more than 3,330 in number; and securities volume under custody servicesounted to US$8.16 billion.
Vneshtorgbank maintains nostro accounts opened with leading clearing centres (National Depository Centre and Depository Clearing Company in Russia, and Euroclear Bank, Brussels and Clearstream Banking, Luxembourg, abroad). Over 290 vostro accounts were opened with Vneshtorgbank in favour of Russian and foreign custodians opening broad opportunities for settlements between custodians. Vneshtorgbank serves 21 global custodians.
Vneshtorgbank has available all up-to-date technological capability comprising such systems as SWIFT, Client-Bank and Euclid, which enable to manage online Vneshtorgbank`s accounts opened with Euroclear Bank. The Bank has in place its own vault which received a certification under international standards, being engaged in comprehensive insurance plans, providing coverage for securities deposited with custodians and in transit.
In October 2003, Thomas Murray assigned Vneshtorgbank depository rating on Minfin bonds and Federal loan bonds at the A- (Strong) level, with stable forecast; in respect of all Russian-issued securities at the BBB (Adequate) level, with stable forecast. Vneshtorgbank is the first and unique Russian custodian to have a specialised rating evidencing its capabilities to render custody services to Russian and foreign customers according to international standards, to enable securities register, storage and settlements at a reasonable risk level.