Bank of Moscow
A former Russian universal bank serving corporate, municipal, and retail customers before its merger into VTB Bank in 2016.
Last updated August 22, 2026
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Overview
Bank of Moscow was a Russian universal bank established in 1995 as Moscow Municipal Bank – Bank of Moscow. Based in Moscow, it developed a broad banking franchise serving municipal institutions, companies, and retail customers. Its activities included corporate banking, retail banking, payment cards, lending, deposits, and other standard financial services. The bank also expanded through ownership interests in other financial institutions, including a 45% stake in Russian Land Bank acquired in 1999. The institution was closely associated with the Government of Moscow during its formative period. By early 2011, the Moscow government’s 46.48% holding had been sold to VTB Bank for 103 billion rubles. The transaction also involved VTB’s acquisition of a 25% plus one share position in Capital Insurance Group, which held a substantial stake in Bank of Moscow. VTB subsequently purchased additional shares from other investors and became the bank’s controlling shareholder. The change of control was contentious and was followed by investigations into the quality and ownership concentration of the bank’s loan book. After the takeover, VTB stated that it had identified substantial bad or problematic lending connected with companies allegedly affiliated with former Bank of Moscow chairman Andrey Borodin. Public reporting and later official scrutiny described a large concentration of loans to related companies, while the precise interpretation and responsibility for the lending remained politically and legally contested. The Deposit Insurance Agency subsequently provided a long-term loan of 295 billion rubles to address the bank’s financial shortfall. The episode became one of the most prominent Russian banking rescues of its period and contributed to the bank’s integration into VTB. Before its disappearance as a separate institution, Bank of Moscow ranked among Russia’s largest banks. In 2011 it was described as the country’s fifth-largest bank. Its distribution network included 267 outlets, branch offices, and cash desks. The bank reported more than 114,000 corporate customers and approximately 9 million retail customers. By 1 July 2016, its portfolio included 6.3 million banking cards. The central office was located in Moscow’s former Moscow International Bank building at the intersection of Kuznetsky Most and Rozhdestvenka streets. Bank of Moscow also became subject to international financial-sector sanctions after Russia’s annexation of Crimea. In July 2014, the United States placed Bank of Moscow and VTB on its sectoral sanctions identification framework, restricting certain dealings in new equity and longer-term debt. The European Union added VTB and related entities to its sanctions regime later that month. Subsequent United States measures clarified and tightened restrictions applicable to VTB subsidiaries, including Bank of Moscow, and reduced the permissible maturity period for certain new debt. The separate Bank of Moscow legal and operating identity ended when its merger into VTB Bank was finalized on 10 May 2016. It therefore survives primarily as a former Russian banking brand and as part of the history of VTB’s expansion and restructuring.
History
Bank of Moscow was founded in 1995 under the name Moscow Municipal Bank – Bank of Moscow. Its creation reflected the development of a major city-linked financial institution intended to support Moscow’s public-sector bodies, businesses, and residents. Over time, it became a full-service bank rather than a narrowly municipal lender, combining corporate services, retail products, lending, deposits, payment cards, and settlement operations. In 1999, Bank of Moscow acquired a 45% stake in Russian Land Bank, extending its interests beyond its core banking business. The institution subsequently developed a sizeable domestic network. Its outlets included branches and cash desks, and it served both corporate and retail customers on a large scale. By 2011, it was identified as Russia’s fifth-largest bank, with more than 114,000 corporate customers and around 9 million retail customers. The bank’s ownership structure changed decisively in 2011. The Government of Moscow sold its 46.48% interest to VTB Bank for 103 billion rubles. VTB also acquired a 25% plus one share stake in Capital Insurance Group, which held 17.32% of Bank of Moscow. Additional purchases from Credit Suisse, a Swiss fund, Vitaly Yusufov, Suleiman Kerimov, and interests associated with Metropolitan Insurance Group increased VTB’s holding to more than 80% by the end of September 2011. The takeover generated a major governance and asset-quality controversy. After obtaining control, VTB said it had discovered extensive bad lending. Reports focused on loans allegedly made to companies connected with former chairman Andrey Borodin. One investigation estimated that related-company lending reached approximately 217 billion rubles, an amount exceeding the bank’s equity; later, the Accounts Chamber was reported to have confirmed important aspects of the concerns. VTB later put the bank’s bad debt at 380 billion rubles. To cover the resulting shortfall, the Deposit Insurance Agency extended a ten-year loan of 295 billion rubles at an annual rate of 0.51%. The controversy had international legal and political dimensions. Borodin was subject to an international arrest warrant in connection with alleged abuse of office and suspected fraud, while he later received political asylum in the United Kingdom. The accusations, ownership changes, and state-backed rescue made Bank of Moscow a prominent example of the risks surrounding politically connected lending and rapid consolidation in the Russian banking sector. From 2014 onward, the bank was affected by international sanctions imposed on VTB and its subsidiaries after Russia’s annexation of Crimea. United States measures limited transactions involving new equity and debt, while European Union measures required the freezing of relevant assets and restricted access to European financial markets. Later United States notices clarified that the restrictions applied through VTB’s ownership and covered Bank of Moscow and other subsidiaries, with successive rules shortening the permitted maturity of certain new debt. Bank of Moscow continued operating as part of the VTB-controlled group until its merger into VTB Bank was completed on 10 May 2016. Its separate identity was subsequently discontinued. At the time of the final integration, the bank’s reported card portfolio stood at 6.3 million cards as of 1 July 2016. The former brand’s history is therefore linked to Moscow’s municipal finance, Russian banking consolidation, a major state-supported rescue, international sanctions, and VTB’s absorption of a large regional banking franchise.
- 2016
Merger into VTB Bank is finalized
[1]The bank’s separate legal and operating identity ends with completion of its merger into VTB Bank on 10 May.
- 2014
International financial sanctions begin
[1]Bank of Moscow becomes subject to United States and European Union restrictions through its ownership by VTB.
- 2011
Moscow government sells controlling interest
[1]VTB purchases the Moscow government’s 46.48% stake and begins building control of the bank.
- 2011
Bank receives state-backed support
[1]The Deposit Insurance Agency provides a 295 billion ruble long-term loan after reported bad-debt and balance-sheet problems.
- 1999
Investment in Russian Land Bank
[1]Bank of Moscow obtains a 45% stake in Russian Land Bank.
- 1995
Bank is established
[1]The institution is founded as Moscow Municipal Bank – Bank of Moscow.
Products and positioning
A Moscow-centered universal bank with strong municipal and corporate roots and a large retail customer base. Its identity was closely tied to the Moscow public sector before control passed to VTB and the business was absorbed into the VTB Group.
Business banking
Corporate banking
Bank of Moscow served a large corporate customer base with lending, account, settlement, and other banking services. Corporate and institutional relationships were central to the bank’s historical role and were connected to its origins as a Moscow-linked financial institution.
Consumer banking
Retail banking
The bank provided services to millions of individual customers, including deposits, personal financial products, payment services, and lending. Its retail scale was reflected in its large customer base and extensive domestic outlet network.
Payments
Bank cards
Payment cards were a major part of Bank of Moscow’s retail franchise. As of 1 July 2016, the bank was reported to have 6.3 million cards in its portfolio, shortly after the completion of its merger into VTB.
Banking products
Loans and deposits
The bank offered conventional lending and deposit products to companies, institutions, and individuals. Lending later became the focus of a major asset-quality controversy involving alleged related-party exposures and substantial reported bad debt.
Controversies
2011
Loan-book and related-party lending controversy
After VTB took control, it reported extensive bad debt and alleged that large loans had been issued to companies connected with former chairman Andrey Borodin. Media reports estimated related-company lending at approximately 217 billion rubles, while VTB later reported 380 billion rubles in bad debt. The Deposit Insurance Agency provided a 295 billion ruble loan to address the resulting financial shortfall. Borodin rejected or disputed aspects of the allegations and was later granted political asylum in the United Kingdom.
Brand decisions
2016
Merger into VTB BankM&ABackground
Following VTB’s acquisition and the subsequent integration of the business, the separate Bank of Moscow structure was discontinued.
Action taken
The merger into VTB Bank was finalized on 10 May 2016.
Aftermath
Bank of Moscow ceased to operate as a separate bank and became part of VTB’s integrated banking operations.
2014
Operations constrained by international sanctionsOtherBackground
The United States and European Union imposed financial restrictions on VTB and related entities in response to Russia’s actions concerning Crimea.
Action taken
Bank of Moscow became subject to restrictions on certain new equity and debt transactions through its VTB ownership and group structure.
Aftermath
Later United States measures clarified the scope of the restrictions and progressively reduced the maturity threshold for covered new debt.
2011
VTB takes control of Bank of MoscowM&ABackground
The Government of Moscow decided to sell its 46.48% stake. VTB was selected after offering a higher price and presenting the required acquisition documentation.
Action taken
VTB bought the municipal stake for 103 billion rubles and acquired further shares, ultimately exceeding 80% ownership by September 2011.
Aftermath
The transaction triggered a management transition, scrutiny of the loan book, and a large state-supported financial rescue.
2011
Balance-sheet rescue and restructuringStrategyBackground
VTB reported that Bank of Moscow had accumulated significant bad debt and an accounting shortfall after the ownership change.
Action taken
The Deposit Insurance Agency extended a ten-year loan of 295 billion rubles at 0.51% annual interest to cover the identified deficit.
Aftermath
The bank remained within the VTB-controlled group and was eventually merged into VTB Bank.
Deposit Insurance Agency support loan. 295 billion rubles (2011; ten-year facility)
Recent events
- 2016
Merger of Bank of Moscow into VTB is completed[1]
M&A · Other
The merger that ended Bank of Moscow’s separate operating identity was finalized on 10 May 2016.
- 2014
United States adds Bank of Moscow to sectoral sanctions framework[2]
Regulation
The United States restricted certain transactions involving new equity and debt issued by Bank of Moscow through its relationship with VTB.
- 2014
European Union sanctions VTB and related entities[3]
Regulation
The European Union included VTB and associated entities, including Bank of Moscow, in financial sanctions connected with Russia’s annexation of Crimea.
- 2011
VTB acquires control of Bank of Moscow[1]
M&A · Leadership change
VTB acquired the Moscow government’s major stake and later purchased additional holdings, becoming the controlling shareholder of Bank of Moscow.
Sources3 sources
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