Banks, Financial Services, Latvia, Legislation
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Friday, 29.03.2024, 11:53
FCMC suspends the provision of financial services by JSC PNB Banka and decides on the unavailability of deposits
Having regard of above and with a view of protecting the
deposits of bank’s customers, the Board of the Financial and Capital Market
Commission (FCMC) at an extraordinary meeting decided to suspend the provision
of financial services and decided on the unavailability of deposits at JSC PNB
Banka.
The ECB as a direct supervisor of JSC PNB Banka took
above decision under the Regulation (EU) No 806/2014, having established that
the bank had failed to comply with regulatory requirements and assessing the
financial situation of the bank.
Suspension of financial services
In accordance with the FCMC’s decision, as from 15.08.2019.
at 21.00 the bank must completely cease the provision of financial services,
including the execution of customer payments. Such a decision is taken to avoid
the outflow of bank’s funds. This means that as from now operations of JSC PNB
Banka’s cards, online banking and ATMs have been suspended.
“We are aware that this news is unexpected for the bank’s
customers, but we can confirm that the FCMC is working to find the most
convenient and efficient solution to start the payout of guaranteed
compensation to the customers as soon as possible, covering the customer funds
deposited in the bank up to 100 000 euro per depositor. In the coming days,
99.2 % of depositors will be able to start receiving their money deposited in
the bank, which will be fully covered by the funds of the Deposit Guarantee
Fund,” FCMC Chairperson Kristīne Černaja-Mežmale emphasizes.
Detection of unavailability of deposits
By reacting to the decisions of ECB and SRB, FCTC has
decided on the unavailability of deposits to enable the customers to receive
guaranteed compensation as soon as possible. The FCMC will decide on the form
and procedures for the disbursement of guaranteed compensation in the coming
days.
The disbursement of guaranteed compensation shall be
started not later than on the 8th working day following the occurrence
of the unavailability of deposits. The Deposit Guarantee Scheme ensures the
disbursement of deposits up to EUR 100 000 for each customer of JSC PNB Banka in the form of a guaranteed compensation.
The guaranteed compensation of up to 100 000 euro
shall be paid to both natural and legal persons for all types of deposits in
any currency. The guaranteed compensation covers the bank client
funds, accrued deposit interest until the date of occurrence of the
unavailability of deposits, current account and payroll account balances and
savings accounts
The FCMC will inform on the future actions needed in
relation to the JSC PNB Banka.