Corporate Commercial Bank
Corporate Commercial Bank AD (), commonly called Corpbank, was a Bulgarian bank. Corpbank was a universal bank, serving both as a traditional commercial bank, as well as an investment bank. According to official data from the Bulgarian National Bank (Bulgaria's central bank) at the end of November 2013, Corpbank was the fourth largest bank in Bulgaria in terms of assets, third in terms of net profit, and first in terms of deposit growth. Following a bank run in June 2014, which many believe was artificially induced, the bank requested special supervision by the Bulgarian National Bank. Its license was subsequently withdrawn by the Bulgarian National Bank in November 2014. However, in 2022, the European Court of Human Rights held the license was revoked in violation of the right to a fair trial and the right to property. The second largest shareholder in the bank litigated before the International Centre for Settlement of Investment Disputes. The chairman of the bank's supervisory board and majority shareholder, Tsvetan Vasilev, was granted political asylum in Serbia. Background Since 2007, Corpbank had been a publicly traded company with a two-tier management system. The shares of the bank were 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 Fund of the Sultanate of Oman through its subsidiary Bulgarian Acquisition Company II Luxembourg. 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 Corpbank. In 2013, 9.9% of the bank was acquired by the one of the biggest banks in Russia – VTB Capital. At the beginning of 2014, Corpbank 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 was expected to be done after an approval from the regulatory agencies. Following a Bank run in the third week of June 2014, the administration of the bank was forced to seek conservatorship from the Bulgarian National Bank. The Bulgarian National Bank allegedly applied dual standards and did not provide liquidity help to Corporate Commercial Bank while it provided a liquidity injection to another bank which also faced a bank run at the same time - First Investment Bank. Contrary to standard practice in the sector, Bulgaria's government rejected a bailout proposal by the bank's shareholders too. Moreover, the Bulgarian National Bank withdrew the bank's license on 6 November 2014 based on a confidential report which it refused to make public. Corporate Commercial Bank's depositors have raised concern that the report allegedly relies on an obscure methodology which has significantly devalued the bank's assets. Tsvetan Vasilev, the State General Reserve of the Sultanate of Oman, and the depositors of Corporate Commercial Bank appealed the decision before the Supreme Administrative Court of Bulgaria. The appeal was rejected with the argument that none of them had a "legal interest" in appealing the decision.