Despite the flood of losses hitting banks, VEF is the only one in Latvia to go out of business.
RIGA — On Wednesday Latvia’s Financial and Capital Market Commission made waves, albeit small ones, in the country’s troubled banking sector by revoking the license of the VEF Bank.
The commission said it was not the bank’s losses that prompted the pull, but rather its unauthorized shareholders.
“This decision was made based on the fact that the bank has not received authorization from the FCMC for its new shareholders, therefore the shareholders have [private_supervisor]no decision-making rights and are unable to ensure prudent bank operations,” commission spokeswoman Anna Dravniece told the Nozare business news wire.
The bank is now barred from executing transactions, and the bank’s website has information for affected customers.
The bank’s presence on the market is tiny, with less than one percent share and less that 5 million lats (€7 million) in total assets.
Despite the flood of losses hitting banks, though, VEF is the only one in Latvia to go out of business. The country’s largest domestic bank, Parex, was nationalized to maintain its solvency in 2008 by the national government. [/private_supervisor] [private_subscription 1 month] no decision-making rights and are unable to ensure prudent bank operations,” commission spokeswoman Anna Dravniece told the Nozare business news wire.
The bank is now barred from executing transactions, and the bank’s website has information for affected customers.
The bank’s presence on the market is tiny, with less than one percent share and less that 5 million lats (€7 million) in total assets.
Despite the flood of losses hitting banks, though, VEF is the only one in Latvia to go out of business. The country’s largest domestic bank, Parex, was nationalized to maintain its solvency in 2008 by the national government. [/private_subscription 1 month] [private_subscription 4 months]no decision-making rights and are unable to ensure prudent bank operations,” commission spokeswoman Anna Dravniece told the Nozare business news wire.
The bank is now barred from executing transactions, and the bank’s website has information for affected customers.
The bank’s presence on the market is tiny, with less than one percent share and less that 5 million lats (€7 million) in total assets.
Despite the flood of losses hitting banks, though, VEF is the only one in Latvia to go out of business. The country’s largest domestic bank, Parex, was nationalized to maintain its solvency in 2008 by the national government. [/private_subscription 1 year]
— This is a paid article. To subscribe or extend your subscription, click here.
