Terra Bank: customer opinions, reviews. Terra Bank: problems

Before going to the bank, each person studies in detail about him the feedback. Terra Bank is one of the Ukrainian financial institutions, which recently attracted the attention of investors. Today, like many other similar institutions, the enterprise is experiencing some difficulties, and frankly speaking, is on the verge of bankruptcy.

Let's go back to the past

Positive feedback, Terra Bank, which met very often, filled the Internet at a time when the financial institution took 16th place in the NBU rating and was a member of the third group of financial institutions. The authorized capital of the bank was equal to 557 141 thousand hryvnia. For the last successful reporting period, the financial institution showed a profitability of UAH 1,107,892. Net interest income was 71,787 hryvnia. According to the classics of the genre, it has already been introduced in an institution such as Terra Bank, the temporary administration. The institution turned out to be the 16th on the list, against which the state took drastic measures. It is worth mentioning that four owners of the organization have changed over the past 4 years. The last two owners used the financial institution solely for the purpose of withdrawing money, which was attracted to investors at incredibly high interest rates.

Everything changes

Earlier successful and prosperous "Terra Bank" (Kiev), which in July 2014 was no longer 16th, but 42nd in the NBU rating, was already declared insolvent on August 22nd. After that, the Deposit Guarantee Fund decided to introduce the temporary administration into the institution for a period of three months. In the same period, active searches for investors began. Such actions were the result of a huge flurry of negative customer feedback. People actively wrote suits to a financial institution and complained to various authorities in connection with the fact that the bank grossly violates the law and does not fulfill its obligations to depositors.

Change of leadership is the first step towards instability

After it was introduced in such an institution as Terra Bank, the temporary administration, a long and very fascinating history of the change of owners became available to the public. Initially, the financial institution was known as "Invest-Kryvbas Bank", established in 1995 in the territory of Krivoy Rog. After a decade, in 2005, the institution received a new name - "Invest-Credit Bank". And only in 2007 the financial institution appeared before the public in the form in which it knows it today. The last change of the name of the bank was initiated by its new owner, which was the director of the Treasury of Oschadbank Kolobov, with him worked Prikhodko and Davidenko. The post of chairman of the board went to Sergei Shcherbin. According to him, the founders did not initially have a strategy for the development of the financial institution for the future. They just wanted to take the institution to the general Ukrainian level with the aim of its further sale. Active development of the enterprise was carried out without joint-stock assets, solely at the expense of profit.

Why so many disgruntled investors?

Negative feedback, "Terra Bank" in which it appeared as an institution that did not fulfill its obligations, was poured from all sides. Where does the financial institution have so many customers, if initially it was focused on servicing only enterprises from Krivoy Rog? The situation is explained by the fact that in 2007 the enterprise was moved to Kiev, its branches were opened in such cities as Dnepropetrovsk and Odessa, Kherson and Lvov, in others. In total there were about 21 branches. The first attempt to sell an already actively developing network was made in 2009. Adjustments in the plans made the global crisis of 2008. The deal was sold only in 2010. The change of leadership was accompanied by an active prosperity of the institution. Thanks to Kirill Shevchenko and Vadim Kopylov, the Institute's assets grew to 1.4 billion hryvnia. In early 2012, the capital of the institution was equal to 2.9 billion hryvnia. Nothing testified that in the next few years there will be reports that "Terra Bank" does not return the deposit.

Double resale

The positive scenario for the development of the enterprise did not last long. Already in 2012 and in 2013 the bank was twice resold. The dark history is connected with Tsyplakov, one of the last owners of the institution. Financial stability was put at risk when the institution issued a loan to one of the enterprises of the businessman at a rate of 40 million. There were rumors that business financing was carried out at the expense of depositors. The debt was never paid, most likely, the owner of the bank himself forgave him. Over the last months of active work of the bank, he attracted all the investors, offering them a deposit with a rate of 26.5%, which is much higher than the average indicator in the market. When the time of partnership with depositors expired, the bank "Terra" refused to give out deposits.

Avalanche of negative reviews

Information about the failures spread very quickly in the society, and people rushed to terminate the contract and withdraw their money. As a result, there was an outflow of capital. A huge number of disgruntled depositors is also due to the fact that Terra Bank, whose problems began only a year ago, established partnership relations with the national aviation university. On the accounts of customers attracted from this segment, according to preliminary estimates, there were 45 million hryvnia. By the time of the total freezing of accounts, an amount of UAH 2.5 million remained on them.

The first problems and attempts to save the sinking ship

When negative reviews were cast on the financial institution from all sides, Terra Bank took a very interesting position, which clearly indicated that the management was trying to withdraw money in every possible way. In parallel to the active advertising of super-beneficial deposits, up to the time of the introduction of the interim administration and already at work within the curator's institution with the NBU, active lending to enterprises was carried out. A powerful increase in the loan portfolio was carried out at the expense of small investors. It should be said that a loan of several hundred million dollars was received by companies with an authorized capital of up to one hundred thousand hryvnia. The expediency of financing them could easily be called into question. To say more, such clients of the bank as the company "VVS-Factoring" and "Trajectory", "Best Course" and many others, not only did not have collateral in the volume of loans issued, they did not have directions in which it is possible to invest money to invest . When the house of a major institute was Krivoy Rog, Terra Bank made great hopes. Today it turned into a money-laundering tool , although it was not officially possible to prove it.

What was hidden from the public?

According to official sources, the first difficulties in the bank were recorded as early as 2013. During this period, the operating loss amounted to 22 million UAH a month. It is strange that at the end of the year the total profit of the enterprise was 1.7 million hryvnia. The problem is that the financial institution's reporting was far from reality. In April, the National Bank of Ukraine made an investment in "Terra Bank", the exchange rate in which favorably differed from the proposals of competitors. The volume of refinancing amounted to about 77 million hryvnia. At the same time, the bank tried all the time before the introduction of the interim administration to pay the debt to the state. Even before the introduction of the administration, the management personnel was completely reconstructed. Almost all members of the board were dismissed. Attempts to sell the financial institution to the crisis were unsuccessful.

What should I do?

The main reason for the bank's problems is the issuance of illiquid loans to affiliated companies. According to the dismissed bank manager, of the 320 million loans granted, only 80 are refundable. You can just forget about the rest. It is also interesting that the credited companies are completely gone. Many even do not have their own resources on the Internet. The registered offices specified at registration of documents, simply do not exist. And some companies were registered at the same address. Thoughtful scheme of machinations on the face. NBU, in order to somehow eliminate the deposits of customers, should take active measures. Here it is a question of recognizing transactions as invalid because of the excess of the credit limit or because of the lack of sufficient security for the lent enterprises. The IMF and the interim administration must work closely together to resolve the issue of reimbursing investors.

Will the situation be rectified by Crystalbank?

After a detailed study of the situation, it was decided to create a transitional financial institution "Crystalbank", which in the future should eliminate all the mistakes of the leadership of Terra Bank. The project is implemented under the auspices of the Fund for Guaranteed Deposits of Individuals, which gives some hope to depositors to return their funds. In the authorized capital of the Transitional Institute FGVFL introduced about 1.522 million hryvnia to compensate depositors. This amount already in 2015 should be fully returned. This project is relatively new for Ukraine and its further fate is in question. It is only known that most of the depositors are actively receiving their payments, albeit outside the rules. The active prosperity of the innovative financial institution will guarantee that all the individuals will have fulfilled their obligations by the end of 2015. In general, FGVFL supports about 50 banks, so a large percentage of depositors have a chance to recover their savings.