OF THE BANK
In 1993 a group
of friends – physicists and mathematicians, graduates from the Moscow State
University- decided to establish a bank. Equipped with only one office, a few
employees and 5 million GEL of fixed capital at that time, the Bank has managed
to weather various changes and to solve plenty of challenges along the way:
Post-soviet period, transition to a free market economy, adaptation to
new economic realities, difficult political and economic situation and much
Being the only
bank in Georgia with a diversified Georgian shareholding and no foreign
ownership or support early in, the Bank could collapsed as swiftly as the 300 banks operating in the 90s, most of
which have failed due to their inability of
adapting to difficult changes and lack of proper management however, it wasn’t Basisbank’s
story. Backed by the sound Management, the Bank evolved through its organic
growth and prepared attractive platform for the entrance of an experienced,
growth-oriented strategic investor.
From the initial
stage Management of the Bank had a clear and simple aim to connect its
resources to the needs of the clients and to prepare a solid ground for a
successful activities of the Bank in a long-term run. Thus, BB’s Management
directed all their resources to accomplish a major business conception
–creation of a niche Bank with a customer-focused approach based on a strong
communication ties with customers.
beginning the Bank has strived for:
Continuous care for the financial welfare of its
Business success of its clients;
Creation of the best long-term partnership with
promising, development oriented SMEs;
Formation of the efficient, reputable
institution in the country;
Gaining recognition and status of a reliable
regional partner among active IFIs.
early years of operation, the Bank has steadily grown up. By the time of EBRD’s
strategic alliance with BB, it was a very different institution among the other
STRATEGIC ALLIANCE WITH EBRD
Prior to the strategic alliance with EBRD, BB put
forth hard work to upgrade its operation to adapt it to the best international practices. By the time when EBRD
became BB’s shareholder, the Bank has already had functional organization
structure, efficient corporate governance structure adjusted to the size of the
Bank and reporting system. During the years of BB-EBRD strategic partnership
the Bank has undergone fundamental changes. The Management of the Bank was
completely reorganized; new significant structures were introduced and
established; with EBRD’s entrance has been changed the format of communications
between Supervisory Board and Management Board
encompassing regular meetings and interactions, the strategic
development plan was re-formulated according to the mutual interests of the new
and existing owners.
A new and
enhanced corporate governance system has been jointly developed by the Bank’s
local personnel and European consultants. For two years EBRD sponsored
Institution Building Plan which was carried out with the assistance of
international consulting company DAI (Development Alternative, Inc (DAI
Europe). UNDER IBP program extensive consulting services were provided by the
European professionals to transform the Bank’s organization structure to meet
the Best international practices.
work that has been done by the Bank’s Management and dedicated staff brought
Basisbank recognition as an efficient, reliable bank with strong position among
its competitors and built a reputation that endures the present day. The
aforementioned four year work has led to the upgrading of BB’s international
ratings: International credit rating agency ‘Fitch Ratings’ increased its
ratings to Basisbank from long-term CCC to B- and from short-term C to B with a
stable outlook in 2010 and reaffirmed it in 2011.
The bank has
grown far beyond its primary vision of a locally owned and managed institution
that meet local needs. It won the confidence and loyalty of its staff, clients,
partners, shareholders and assured that this once-small local bank became a
significant player and a trustworthy partner on the market.
2012 – UP TO
ENTRANCE OF A
NEW STRATEGIC INVESTOR – HUALING GROUP
strategic alliance was a period of Basisbank’s significant organizational
transformations and developments, it has prepared the groundwork for the Bank’s
robust organic growth strategy.
On the background of already developed, a strong financial
institution, the Bank decided it was a right time to strenghten its position and
started looking for an opportunity to increase its capital and capture market
share in the country. Basisbank
was already prepared for a more dynamic growth, however further solid capital
infusion was required and the Bank turned its attention on looking out for
potential strategic investors as a possible leverage to realize the Bank’s
robust growth strategy.
In 2012, BasisBank
found such an investor who would be interested in the company’s further rapid
development and who would inject additional capital in the Bank’s business
acceleration. China’s Xinjiang Hualing Industry & Trade (Group) Co., Ltd
(the "Hualing Group") – a huge Chinese company has acquired 90%
equity stake in BasisBank. By that period Basisbank already had:
Efficient organizational structure based on the best Corporate Governance
Rapid, efficient and responsive services;
Full package of banking services for Retail, Corporate and SME segments;
Competent and equipped staff to handle local and global business challenges for
Well-developed network of branches.
Along with with
the new owner and solid capital infusion the Bank started to rigorously execute
its renewed 5 year strategy that encompassed ambitious growth.
By the end of
2014 changes were made to the shareholder’s structure of the Bank. Hualing
Group retained its majority 92.78% interest in the Bank. EBRD and Z.
Tsikhistavi, as part of the Subscription Agreement have sold remaining shares
of the Bank being in their ownership. Mr. Mi Zaiqi, Member of Supervisory Board
acquired 7% of the Bank’s shares, while current Management Board of JSC “BasisBank”
has collectively invested and acquired 0.22% shares in the Bank.