Banks, Financial Services, Latvia, Legislation

Officially, the joint-stock Citadele banka is the newly-established credit institution the result of restructuring of Parex Bank, and its founder is the Privatization Agency, informs LETA.

FCMC representative Anna Dravniece indicated that when making its decision, the FCMC council noted that the Privatization Agency had issued all documents stipulated in normative acts, and that the bank's basic capital, board members, and founding party all conformed with the requirements of the Law on Credit Institutions, and that there were no grounds for concern over the lawful origin of the bank's basic capital.

The commission also received documentation on June 22 of the minimal initial basic capital payment into a temporary account at the Bank of Latvia.

The Finance and Capital Market Commission also supported the appointment of Juris Jakobsons as the CEO at Citadele banka, as well as the appointment of current Parex banka board members Valters Abele and Guntis Belavskis to the board of the new bank; the new bank's council will consist of Klavs Vasks and Juris Vaskans from the current Parex banka council, as well as Andzs Ubelis from the Finance Ministry. Amanda Bikse is to be the director of the new bank's internal auditing department.

According to the requirements of the Law on Credit Institutions, the new bank can begin its activity following its entry into the Commercial Register and the receipt of its license from the FCMC.

As the business portal Nozare.lv was told by Inga Saleniece, the new bank's corporate communications director, the Register of Enterprises would be issued all the necessary documents today, June 30, in order to enter the bank into the Commercial Register.

A press conference will be held tomorrow, July 1, to inform the media about the bank's name and brand.

In an interview today with Nozare.lv, new Citadele banka CEO and Parex banka Council Chairman Jakobsons expressed his firm confidence that the new bank would have no problems in acquiring its license, but that the problem-free assets from "Parex banka" would only be transferred to the new bank on August 1, when the new bank begins its commercial activity. On this date the bank will also acquire the SWIFT codes from the old Parex banka.

Clients will be informed on which part of Parex their obligations will be held by before the new bank begins its operations on August 1. Clients will be informed personally, via internet bank, the client contact center, or other communication channels.