[HEROES: WHAT MATTERS MOST] VALERI BELOKON: MONEY SIGNIFIES BELIEF. ALL OTHER THINGS ARE MERELY MYTHS

Yelena SHEININA

Ten years have passed since the owner of Baltic International Bank Valeri Belokon gave his first extensive interview to our magazine. A lot has changed since then in , at the Bank, and in his own life. In 2018, BIB will be celebrating the 25th anniversary of its foundation. Together as a nation, we’ll be celebrating the centennial of our country’s statehood. So, it would be quite appropriate to assess what has been done and to catch a glimpse of the future.

You’ve been running your bank at a and money, and now humans can deal stretch over 25 years, and you have with new technologies, it means that never intended to transfer it or to hand ”bank sapiens” has also underwent its over the reins to anybody else. Could evolutionary change you tell me frankly, are you a dictator Like any civilised European bank, we can by nature? operate at any place in the world today. We can offer new products that are I wouldn’t say so. Admittedly, I highly suitable for any western, eastern, southern appreciate managerial and decision-making and even northern customer. A quarter- skills. I’ll tell you even more: many people century ago, we had other mentality! are able to make decisions. But alas! Not At that point in time, we were not able everyone is prepared to assume to acquire customers having a vast responsibility for the decisions. In experience of dealing in the global principle, I could hand over the wheel. markets. Although we had a clear view of Moreover, you should get that done to the situation and knew their requirements, keep moving forward. Because I wish the they were not ready to bank with us. But bank survived me. Firstly, everything has we continued to grow, grew together with its time. Secondly, you should be waiting Valeri Belokon maintains a long-lasting our customers and rapidly evolved our for someone who is worth your trust. We business. And we continue to grow at a friendship with His Royal Highness Prince obtained our banking licence 25 years ago. Charles of Wales. As a member of the skyrocketing pace. Today, deposits of our Our then-current share capital totalled 25 EU-based customers make up 49.8 Board of Trustees of the Prince’s thousand of Latvian Lats (the equivalent of percent of the bank’s aggregate portfolio. Foundation for the Built Environment, nearly US$ 40 thousand). Valeri Belokon has been engaged in And we set out ourselves the goal to The banking industry is increasingly managing the Prince’s assets during three become a truly great bank. We had six prone to reshaping their business and years. rooms and 19 dedicated and ambitious adopting innovative strategies. As banks employees. They were opened up to the become more sophisticated, human world and strongly believed that intervention becomes less necessary in everything is going to be superb. a digital landscape. It may look Something like 100 banks operated in paradoxical, but the financial Latvia at the time. But that was not the environment is becoming more point. Importantly, we then articulated schematic and clear while getting more our purpose: sophisticated. What do you think about WE ought to become a BANK! And no evolution of the attitudes towards matter how many banks remain operating, money? Does this “simplification” mean even if only two of them are left in the that once you’ll return to your six banking landscape. rooms? In this regard, nothing had changed since then. I look only forward, never It seems unlikely that in reality we’ll “Everyone who has ever back. You shouldn’t chase after the past. return there. No, no. I expect the effect Otherwise the future will slip away. Those to be the opposite of that. Now, we are enjoyed the luxury of human much closer to having six buildings in the communication (to be more are my principles. For me, the future is more interesting and more important. Old rather than six rooms. And the precise, a confidence-based situation is irreversible. But the evolution communication encompassing What is Baltic International Bank today? is really underway. Financial mechanisms are constantly personal finances) will never I would like to compare it with a human changing. A variety of alternative refuse from it. being or, to be more exact, with the instruments appear. Today, You should feel pleasure of human stages of human being’s development. cryptocurrency is a trendy topic in the Humans termed as “homo habilis” (handy interaction”. financial world. man), “homo ergaster”, “homo neanderthalensis”, “homo sapiens”... If homo sapiens has learned to make fire, used stone axes, could deal in gold

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Mass-production techniques currently whom the 18th of November is not merely a You sound like a socialist! provide impeccable quality. Still, many people date. For me, it’s a celebration of a free choose to purchase Aston Martin or Bentley thought. The concept of freedom is Never ever! I’m not an idealist. brands not because they are pricey but fundamental for me, and I emphasized that 10 because of their bespoke handcrafted luxury. years ago. Only with respect to the nation you are... The car owners prefer pay big money I would say we, I and this nation, had specifically for the human touch. UNITED WE STAND, DIVIDED chosen each other. And there is a striking Do we want to make money at any cost? 25 WE FALL coincidence between us. And I absolutely years ago we said no. When out peer banks know that this country is not something How much of a patriot you are? were ready to accept five dollars from any abstract but concrete: we ourselves are the occasional depositor, we set the minimum By patriotism I mean a particular form of country. deposit requirement of US$ 10 000 per belief. You can’t exist without any belief. Belief I witnessed lots of processes in Latvia and depositor. And future events proved we were is imperative in all aspects. Firstly, you should saw politicians come and go. Also, I know how right. In 1995, many banks were hit by the believe in yourself. Many people lack belief in the others emerged in the political arena. I financial crisis. We disclosed our accounting themselves. What people really need is to myself got engaged in some of the processes. books to our customers who had already believe in their own mind. Quite often people Admittedly, we were very naive and therefore earned US$ 10 000! You know, we saw no any also lack determination and strength of will. made a plenty of mistakes. But we are well runoff. We succeeded to retain our faithful Some time ago I took my sailing hobby to a positioned to remedy our mistakes and to customers. new serious level. A few thoughts from my continue building our nation. We are relationship people. We and our experience: here is the calm after the storm, I agree that it’s always difficult to fight, likeminded customers highly value relationship situations change one after another. But you especially if you stand up against red tape or built on mutual confidence and sharing of should definitely know that you must steer servants who believe they will hold their posts common interests and goals. To become a successfully through the storm. And you forever. But they are wrong! Very often the family bank like a 350-year-old private bank should believe that you will cope with the nation is perceived as lacking competence С.Hoare & Co., the oldest bank in the United challenge. You cannot go sailing without being because all of the regulations are drafted by Kingdom, we need to be customer-centric. up for the task. ordinary people who lack competence. That is Founded in 1672, С.Hoare & Co. remains The same refers to business. For example, why you can’t sit on your hands! If we do family-owned and is currently managed by the we had to part with some very smart and nothing to alter the situation, then the nature 10th and 11th generations of Hoare’s direct well-educated top managers just because they will alter it. We are the revolution, and the descendants. We should choose the saw only insurmountable barriers and were nature is the evolution! customers we will work with in the same way not able to believe in a favourable outcome.

as they choose us. It’s always a two-way But it seems that most people prefer to go Likewise, in the dispute with the shareholders of Blackpool FC, I was offered to accept that street. abroad rather than to fight, no more waiting my claims are at the level of £800-900 and to Look at this picture. I remember a customer for the revolution. How are you going to And debates are flaring about the stability of In face-to-face communication, you feel who entered this room, saw the picture, fight against the outflow? end up the litigation. But we have not Valeri Belokon and Vilori Belokon, the brothers cryptocurrency and eligible collaterals used as emotions. Emotions are very important for immediately took out his iPhone and started abandoned our standpoint and have won 31 The problem certainly exists. I myself was security. What is the ‘security’ for Leonardo many people. to show me „the Dutch”. We talked about million pounds in October. and the owners of Baltic International Bank close to those people who shaped the policy da Vinci’s Salvator Mundi (Savoir of the But we focus not only on our bank and not paintings for some time. Later, his company and were able to resolve of to have resolved Do you think that business is a team sport World) recently auctioned for $450 million at only on money. The words ‘handmade’, transferred a few millions to their accounts the problem. Apparently, I have not outlined rather than the first person’s individual will? Christie’s in New York?! Apparently, it was ‘handcrafted’, ‘artisanal’ signify something that held with our bank. Paintings were not and explained my stance clearly enough and ‘secured’ by our belief in the sublime beauty is certainly better, classy items, products that necessarily the main point. But we must As far as out bank is concerned, business is have not persuaded them to take action. If the or artistic value of the masterpiece. are esteemed to be of the highest quality, be it always understand that we’re all living in the a team sport – if the team is competently population outflow continues, it will affect our Amidst enormous global changes, one a tailor-made suit, a car or a yacht. Fine hand same world, in the same coordinate system. managed by the first person (Laughing.) At bank as well. No doubt about that. It’s not a principle remains unchanged at all times. sewing is a characteristic of high-quality We and our customers are aware of the Baltic International Bank, we take human question of shrinkage of our customer base. About the future of Money signifies belief! All other things tailoring. Nowadays, the term ‘tailor-made’ importance of being on the same wavelength, resources quite seriously. A young girl (born It’s a question of „natural selection”. Who Baltic International Bank are merely myths! goes far beyond the tailoring universe. thinking alike and having a deep understanding in 1996) has recently joined our team. And I goes away? The best and courageous people “There is one thing we can be If we speak objectively, today money is not A BOSS suit is renowned for its perfect fit of each other. thought: but for her, our bank has always and those whom we want to bank with us! absolutely certain of: ours will be a actually backed by any cache. Yet, a moneyless to the body. Nevertheless, a BOSS suit and a existed! From today’s angle, this project is world seems pretty impossible. Money works bespoke suit from London’s Savile Row tailors WE ARE OF THE SAME BLOOD, WE To tackle and stop the outflow from the already longer than her life until now. To build great bank! like the blood and keeps the economy alive. are not the same thing. AND OUR COUNTRY! country, the government should create an our future, we make emphasis just on young, enabling environment! As for me, I’m working ambitious and self-confident staff members. This will be a bank of truly Government cannot function without money, Everyone who has ever enjoyed the luxury Next year, not only our bank will celebrate and paying taxes. I have created 270 Nobody knows what the future holds. international calibre, a bank that can and society cannot work without money. of human communication (to be more precise, its jubilee. Our country will celebrate its workplaces at my bank — isn’t it an Nevertheless, I have already said: There is Financial relationships exist as long as people a confidence-based communication anniversary. The centennial is a pivotal, boast of super professional team, and impressive number?! one thing we can be absolutely certain of: believe in their country that mints money and encompassing personal finances) will never epoch-marking event in the history of the a bank serving international customers The government should provide support to ours will be a great bank! It will be a bank of in the country’s financial system that handles refuse from it. You should feel pleasure of country. Your business is essentially businesses, and the businesses should create truly international calibre, a bank that can at any place around the world. I don’t and keeps the money. human communication. international. You maintain very close ties more workplaces. boast of super professional team, and a bank want to sound pompous, but we have What really matters is how you build the Today, cars are widely used and hansom with the Great Britain. And yet, Latvia For example, we have embarked on serving international customers at any place relationships! Regardless of all gadgets and cabs are no longer in high demand. But a remains central to your life. What does this very ambitious goals. The paths to our financing extremely interesting projects. We around the world. I don’t want to sound computer technologies, there are and there certain number of horse-drawn vehicles are country mean for you? goals are inevitably filled with will always be people for whom the personal still needed! Someone really needs them! and Mottra (Latvia-based caviar producer) pompous, but we have very ambitious goals. challenges. And we’re ready to take up touch is extremely important, especially in a Tastes differ, and people are not alike. That is May be my words will sound somehow have joined our efforts to build a fish breeding The paths to our goals are inevitably filled plant in Piebalga. Mottra has a vast experience any challenge”. sensitive and delicate sphere such as finance. why it is so important to pinpoint “our pathetically but quite honestly. People live by with challenges. And we’re ready to take up It’s pretty obvious. At Baltic International people”. their feelings. I can experience versatile and and its own work patterns. any challenge. Bank, a private banker has always been serving pleasant feelings and emotions while in Britain, The plant will be the largest in . We How would you describe “our people”? are planning to launch the plant next year. And as the direct link between customer and Bank. USA or Japan. But I’m living in Latvia and this is not the only example of successful As far as gadgets are concerned, a gadget is They are those who highly appreciate a enjoying my life here, in my homeland. And only a communication device. my choice is absolutely deliberate. Well, that’s cooperation. personalized approach, services and products People do not want to live here, but they In the internet environment, people deal exactly my point. tailored to their individual needs and must do. And we must help them. Our with figures, products and instruments. “handmade work”. You know, a car assembly A day or two ago, we celebrated the 18th projects are aimed at bringing benefits to

line is not an exception. of November. Every year, we invite people for people.

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What if it turns out that the father’s suit looks oversized and does not fit the

children properly or does not correspond with what’s called “natural stance”? You know, we arrange annual conferences for our customers. Donald Trump John Jr. attended our conference as a guest speaker. That was one of the best conferences that we had ever been to. Just these aspects were discussed during the event. The attendee feedback was truly awesome! Wealth succession is not a new topic. All you need is to create the mechanism that sooner or later gets into the right hands. The right person whom the “suit” will fit perfectly will

emerge! If not in the second, then in the third generation…. My guess is that we’ll be able to find the “safe hands” pretty earlier. Our preparations are well underway. We’ve embarked on preparing a new home for our Cryptocurrencies have emerged… Are you We must therefore be prepared to work bank! We’ve undertaken a five-year project ready for a new challenge? Are you ready to diligently. We are not going to be the that envisages the construction of five new deal with another type of virtual money that bellwether, it’s true. But our explicit intention buildings. Functionally, the initiative implies the has popped up? We know that banks today is to be the most literate, competent and expansion of the bank’s activities, including the operate substantially with virtual money. prepared well! creation of a finance museum possessing private collections and of commercial We are not going to ignore the challenge, Imagine that the time has come to transfer infrastructure. Now, the site qualifies as a that’s for sure. business, to hand over the reins? So, what degraded area. But in the history of Riga, it has Most likely the government will harmonise will happen thereafter? the virtual currency sector. What is a problem been the starting point! The modern Riga has that virtual currencies are facing today? The There is nothing extraordinary about that. begun its creation from the construction matter is that they are still in a grey zone. So, Sooner or later that moment will come. works in this area. There was a lake, formed they may arouse interest in those who Meanwhile, I do not specifically focus on the by the Ridzene River, in the place where transfer. I really prefer to postpone it until Albert’s Square is situated today. There was a somehow operate in a grey zone. Uncertainty hangs over cryptocurrency because it’s not later. port, and ships stood here where we’re sitting quite clear by what commodity the currency is I haven’t yet ‘painted’ a transferee to whom and talking. backed. I could leave the things I’ve worked hard for in There is a definite symbolism in all that stuff, But sooner or later the owners of life. And I want to enjoy my own creation. The which is important to me. When we bank is my life’s work! I cannot yet abandon it. embarked on the project, I didn’t know cryptocurrencies will show their willingness to legalise, pay taxes, conduct transparent For me, it is important what I leave behind. I anything about that. transactions, and the like. They will need work to assure that my undertaking, my life’s A LITTLE BIT ABOUT SYMBOLS someone who will provide them with relevant work continues into tomorrow. And I AND SIGNS FROM THE UNIVERSE understand what the tomorrow would look Do you believe in any signs from the tools. We are working on this issue because in the like. Management techniques may vary. But I Universe? future cryptocurrency will be dominant in the bear the ultimate responsibility for the I do believe. The signs and messages are financial world. decisions made by my people. everywhere, but the interpreting can be the most challenging.

BOOK PUBLISHING COMMITMENT Valeri Belokon is always surrounded by very different books while being very choosy about them. He relishes the opportunity to publish books. A patron of the arts and culture, Valeri Belokon implemented a few publishing projects. He said all of the projects were associated with something inherently new and were needed just at that particular point in time. The publications range broadly from encyclopaedia to folios. The biographical encyclopaedia Who is Who in Latvia was started from scratch. Valeri Belokon was a trendsetter at the time. Nothing of the kind has ever been seen in the country. Baltic International Bank sponsored the republishing of the unique historical album (see the picture). The original copy of the album was printed in1888 in Riga and thereafter presented to Pope Leo XIII. In the Baltic States, there are no equal-value analogues of the unique album in terms of concept, content and design. The project took several years and was completed in 2014. Special thanks should be extended to Archbishop of the Riga Roman Catholic Archdiocese of Riga and Metropolitan Zbignev Stankevich with whom Valeri Belokon maintains long-standing and particularly close relations and whom he characterises as follows: „His thought goes far beyond Latvia. For me, he is a great person who is thinking geopolitically on a countrywide scale”. Currently, a new book about Latvian heraldry is underway. The book seems likely to become as rare as Terra Mariana.

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Do you make your decisions while their laws so as to assure that the crews relying on figures or being guided by come safely back ashore. intuition? Do you prefer being guided A ship without a captain cannot sail. A [ГЕРОИ: О ГЛАВНОМ] by your sixth sense or even seventh ship must be monitored continuously. sense? That’s why the wise laws of the land and of the water were formulated likewise. You know, it’s the seventh one. For The sea gave people the understanding of me, it is more important than figures. certain common values of mankind. Because I look forward and see the future Everyone seeks his own ways of -- in the broad sense of the word. discharging adrenaline. As for me, I would I believe in a “banker’s karma”: we are like to steer through and control wind, to responsible for the money entrusted to stay alone with nature, to feel the power us by people, responsible even more for of the sea, and to feel just that felt by the trust itself. Somewhere in the very ancient seafarers. I have four years of depth of my heart I know: if anything goes yacht-sailing experience. One of the wrong, I will bear my burden of things that come to mind is the waves I’ve responsibility over a quite long period of encountered with for the first time. It’s time. And I will be accountable for my quite funny. But each subsequent voyage actions not only to the supervisory brought new feelings and new experience. authorities. I choose new sailing spots and Either positive or negative energy can destinations and go sailing in different fuel work. Would it make any boats. difference to you? Or the final result is I have challenged myself to undertake a all that matters? transatlantic crossing, and not as a passenger but as a fully-fledged and a In fact, I’m absolutely convinced that worthy member of the team. Mastering human thoughts can materialize in the that challenge is very important to me. I future: if you pursue something good, you also believe that sooner or later I will be will get it. I personally prefer to be put in able and ready to undertake a round-the- “I believe in a „banker’s karma”: tune with and to stick to positive world voyage. The voyage will take nearly we are responsible for the constructive energy that would embrace a a year and a half or two years, and it is money entrusted to us by lot of people and that would be shared looks very problematic indeed. Finding people, responsible even more with them and that would make them time is hard. Well, it’s not exactly the happy. We therefore readily support right moment! for the trust itself. Somewhere charitable projects. Financially capable in the very depth of my heart I people should feel inspired to go out and Just imagine yourself in a fantastic know: if anything goes wrong, I lend a helping hand to the needy ones. situation. Like Robinson Crusoe, you We’re not talking about taxes because find yourself stranded on a remote will bear my burden of taxes are paid on the mandatory basis and desert island. All the stuff you have is responsibility over a quite long boost government coffers. Taking action on you. No credit cards, no cigars, period of time. And I will be and doing good things for society this is and no your cell phone. For what will accountable for my actions not what we’re actually talking about. you be still vigorous enough? Importantly, I should take an active role For life! The same one! I’ll be able to only to the supervisory and feel engaged into the entire process! authorities. enjoy the same feelings, the same I’m harvesting energy from the process. satisfaction and pleasure from life. That’s it. While driving in my car this morning, I’ve recalled our last interview. You know STEERING THROUGH THE WIND what I thought? As a person, I feel freer You can get energy from somewhere than ten years ago. Probably, I still have else, right? Let’s talk about your latest any skeletons in my cupboard. But they hobby, I mean your yachting lifestyle. do not scare me. I do think if I touch What does the hobby give you? them, they will break up. So, it’s better to leave them untouched. It brings about absolutely new and very strong feelings. A sailing yacht is Wherefrom do you draw your associated with being close to nature, strength? subduing its elements and feeling its All people draw strength from the love! power. It’s not the same as a motorboat. It is the same with me too. I mean love I’m doing my best to skipper my yacht from your dear ones, love for thrill, for in a variety of weather conditions. When this table that should be perfect and you are offshore, the number of beautiful (the editor’s comment: The subordinates you have left on land and the custom-made table mentioned here has reality of your on-land routines no longer been made by a skilful Latvian artisan. The matter. You live up to the code of the table is not only functional. It is symbolic sea. And the size of a yacht left onshore in a certain sense.) doesn't matter at all. Just imagine you What is a driving factor behind what meet a huge tanker and you need the people do? Love! Love cannot endure weather info. Be sure the tanker crew will indifference. Love reshapes itself over help you out. And the fact that you are time. It grows stronger, more powerful sailing just a tiny yacht would be wholly and deeper. It makes us better and gives irrelevant. Relations between people are us strength. Love is a chemical reaction. the only thing that really matters. It’s just the way life works, and it’s the Traditional maritime countries such as way things are set up. And we need love. Scandinavia, UK, France and Spain have always lived according to marine rules. They formed the crews and formulated

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