Corporate Commercial Bank

Corporate Commercial Bank AD
Корпоративна търговска банка
Public
Industry Financial services
Founded 1994
Defunct 2014
Headquarters Sofia, Bulgaria
Products Retail, private and corporate banking
Website Corporate Commercial Bank

Corporate Commercial Bank (Bulgarian: Корпоративна търговска банка) was a Bulgarian bank. According to official data from the Bulgarian National Bank[1] at the end of November 2013, Corporate Commercial Bank AD was the fourth largest bank in Bulgaria in terms of assets, third in terms of net profit, and first in terms of deposit growth. The bank's leadership has been accused of operating a Ponzi scheme. Its license was revoked by the Bulgarian National Bank in 2014. The bank's chairman, Tsvetan Vasilev, fled the country and as of the end of 2014 faces extradition proceeding in Serbia.

Background

Since 2007, Corporate Commercial Bank AD is a publicly traded company with a two-tier management system. The shares of the bank are traded on the Bulgarian Stock Exchange Bulgarian Stock Exchange (BSE) – Sofia AD. In 2009, 30% of the bank’s capital was acquired by the State General Reserve of the Sultanate of Oman through its subsidiary Bulgarian Acquisition Company II Luxembourg.[2] In 2010, Fata Assicurazioni Danni S.p.A and Fata Vita S.p.A (subsidiaries of the Italian insurance holding Generali Group) acquired a minority stake in Corporate Commercial Bank AD.[3] In 2013, 9.9% of the bank is acquired by VTB Capital.[4]

In the beginning of 2014, Corpbank AD signed an agreement with Credit Agricole S.A., France, to acquire 100% of the shares of Credit Agricole Bulgaria EAD’s capital. The completion of the acquisition is expected to be done after an approval from the regulatory agencies.[5][6]

Following a Bank run in the 3rd week of June 2014, the administration of the bank was forced to seek conservatorship from the Bulgarian National Bank, until its license was revoked on the 6th of November 2014. The reason for the revocation, according to the Bulgarian National Bank was a significant exposure of the banks credit sheet to investors related to Tsvetan Vasilev.[7]

Corporate management

Supervisory Board

Management Board

Products and services

Corporate Commercial Bank AD has established itself as one of the most dynamically developing banks in Bulgaria.[10] The bank offers a wide range of bank services for both individual and corporate clients. According to its experts, the competitiveness of Corporate Commercial Bank AD’s is due to a number of factors among which: understanding of the target markets and focus on export oriented companies. The stable client base is due to the long-term relations with leading companies in the spheres of trade, energy and utility services, construction, etc.[11]

Corporate social responsibility

Corporate Commercial Bank AD conducts its corporate social responsibility by supporting initiatives and projects in the fields of education, healthcare, science, sports, culture, etc.[12] Some of the initiatives include:

  1. The Big Check initiative which awards every Bulgarian athlete, who has won an Olympic or World Cup title as well as golden medalists from European championships.[13][14][15]
  2. General sponsorship of the Bulgarian Volleyball Federation [16][17]
  3. The Wish Tree initiative, which is aimed at supporting the children from the Dragalevtzi orpahange and the Hristo Raykov orphanage in Gabrovo [18]
  4. Support for the Bulgarian Sports Federation For Children Deprived of Parental Care through the financial backing of the Federation’s annual sports schedule (2012, 2013, 2014) as well as through methodological help.[19]

Awards and recognition

Run on bank prompts Bulgarian central bank to seize control. SOFIA, June 20 — A run on Corporate Commercial Bank (Corpbank) prompted Bulgaria’s central bank to take control of the country’s fourth-largest lender today and its governor begged depositors to stay calm, saying: “Let’s not tear down our house”.

The Bulgarian National Bank said it had taken control of Corpbank’s operations for a period of three months and removed its management and supervisory board, but stressed it was not bankrupt.

A Reuters photographer saw dozens of people queuing outside the main office of the bank in the Bulgarian capital today.[20][21]

Throughout the years, Corporate Commercial Bank AD has received a number of awards and recognitions. The bank has won the Dynamic Development Award of the Bank of the Year Association five times (2001, 2002, 2010 г, 2011, 2012),[22][23] Zlatna Martenitsa from the Made in Bulgaria – Small and Medium Business Union in the financial institution with the most favorable credit policy category as well as many other recognitions and awards.[24]

In 2012, the bank improved its ranking the See Top 100 Banks ranking by taking the 24th place among the biggest banks in Southeastern Europe. This is 11 positions higher compared to the 2011 ranking when Corpbank AD took the 35th position.[25][26] In the beginning of January 2014, the Bulgarian Stock Exchange – Sofia AD awarded Corporate Commercial Bank AD with the 2013 Investment intermediary with the highest revenue on the BSE – Sofia award.[27]

Attitudes & Altitudes – Quarterly Economic Review

In the beginning of 2012 Corporate Commercial Bank AD began publishing Attitudes & Altitudes – Quarterly Economic Review of Corporate Commercial Bank AD. The publication has a Bulgarian and an English version.[28][29] The publication is prepared by students from the University of National and World Economy and academicians from the university. The publication conducts an economic review of various sectors of the Bulgarian economy. It also contains interviews with experts and business leaders working in the sector that is covered in the each issue.[30]

Cultural heritage

The bank’s headquarters is located at 10 Graf Ignatiev St. The headquarters of the Bulgarian Commercial Bank, the local bank with the largest capital at the time, was located in the same building from the end of the 19th century until the beginning of the 20th.[31]

The project for the building was made in 1921 by Georgi Fingov, Dimo Nichev, and Nikola Yurukov from the Fingov, Nichev, and Apostolov architectural studio. The building was built in a baroque style which was typical for the beginning of the 20th century. Corporate Commercial Bank AD has preserved the authentic exterior and interior of the building to a great degree and that is why the building was named as a cultural heritage in 1978. The eminent Bulgarian banker and social figure Atanas Burov was part of the Bulgarian Commercial Bank’s Management.[32] The original bureau of Burov, where he worked while he was at the Bulgarian Commercial Bank, is kept at Corpbank AD’s building. АД[33] The monument of Burov was officially unveiled at the end of 2011. It is located in front of the Ivan Vazov National Theater and is built with funds provided by the Chairman of the Supervisory Board of Corporate Commercial Bank AD Tsvetan Vasilev.[34][35] The monument was built by the sculptor Professor Emil Popov and Petar Stryaskov, architect. Ilia Georgiev, Chairman of the Deserving Bulgarians Foundation is the initiator of the project .[36]

See also

References

  1. ↑ "Distribution of Banks by Group as at November 30th", BNB’s official website
  2. ↑ Oman's Sultan Buys 30% of Bulgaria's Corporate Commercial Bank Novinite.com, January 27th, 2009
  3. ↑ Generali Acquires Stakes in Corporate Commercial Bank, Bloomberg, December 10, 2010
  4. ↑ VTB Capital Buys 9.9% of Bulgaria's Fifth-Largest Bank, Highbeam Business, April 22, 2013
  5. ↑ Corporate Commercial Bank AD Signed an Agreement with Credit Agricole S.A. to acquire Credit Agricole Bulgaria EAD, Trud Newspaper, January 22, 2014.
  6. ↑ Corpbank AD Buys Credit Agricole Bulgaria, The Banker newspaper, January 22nd, 2014.
  7. ↑ http://bnb.bg/PressOffice/POPressReleases/POPRDate/PR_20141106_1_BG
  8. ↑ Corporate Commercial Bank AD’s Official Website“
  9. ↑ Corporate Commercial Bank AD’s Official Website
  10. ↑ "Which are the best banks in Bulgaria? ", inews.bg
  11. ↑ Corpbank AD’s Official Website
  12. ↑ Corpbank AD’s Official Website
  13. ↑ “Corpbank AD Awarded a Big Check to the paralympians, the Monitor newspaper, November 2012.
  14. ↑ „CorpbankAD awarded 26 European, World, and Olympic Champions”, econ.bg
  15. ↑ Stanka Deserved an 8th check from Corporate Commercial Bank AD, the Standart newspaper, October 26th, 2011
  16. ↑ “Corpbank AD is the new general sponsor of the Bulgarian Volleyball Federation“, BGNES agency, September 10th, 2012 г.
  17. ↑ „BGN 500 000 for a volleyball title” “, the Trud newspaper, July 17th, 2013.
  18. ↑ “Corpbank AD with a traditional Christmas charity initiative”, money.bg, November 23rd, 2011
  19. ↑ "The Arena Armeec Hall Gathered 450 Children Deprived of Parental Care, the Standart newspaper, April 25th, 2013
  20. ↑ http://www.themalaymailonline.com/money/article/run-on-bank-prompts-bulgarian-central-bank-to-seize-control
  21. ↑ "UPDATE 4-Run on Corpbank prompts Bulgarian central bank to seize control". reuters.com. Thomson Reuters. 20 June 2014. Retrieved 1 December 2016.
  22. ↑ Bank of the Year Association’s Official Website
  23. ↑ Dynamic Development Award
  24. ↑ The Zlatna Martenisa Awards, bTV.bg
  25. ↑ For the second year running Corporate Commercial Bank AD marked the biggest increase in See Top 100 Banks ranking, the Politika newspaper, December 6th, 2013.
  26. ↑ Corpbank AD moved up the See Top 100 Banks ranking, the Banker newspaper, February 10th, 2014
  27. ↑ Corpbank AD had the highest revenue on the Bulgarian Stock Exchange for 2013, econ.bg, January 9th, 2014
  28. ↑ Corpbank AD released its own publication with economic analyses, the Politika newspaper, March 16th, 2012
  29. ↑ New Magazine, TV7, March 14th, 2012
  30. ↑ Официален сайт на КТБ АД
  31. ↑ „Burov – Atlas on his knees”, Tema Magazine
  32. ↑ Atanas Burov’s Biography,Atanas Burov Foundation
  33. ↑ Sofia’s Clocks as a Tourist Attraction, Bulgarian National Radio – Radio Bulgaria, May 16th, 2010
  34. ↑ „Atanas Burov’s Monument was revealed on Banker’s Day”, the Monitor newspaper, December 7th, 2011
  35. ↑ Builder of Contemporary Bulgaria, TV7, December 6th, 2011 Archived February 8, 2014, at the Wayback Machine.
  36. ↑ A monument of Burov was built at the garden next to the Bulgarian National Bank, news.bg, December 6th, 2011

External links

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