Monday, August 11, 2014

‘Bad Bank’ can no longer take deposits – TVI24

'Bad Bank' can no longer take deposits – TVI24

The “Bad Bank” (Bad Bank), the Bank Holy Spirit was active with the ‘toxic’ beyond the control of the Bank of Portugal (BoP) can no longer accept deposits, grant loans and is also subject the other ‘measures of corrective surgery. “

According to the agency Lusa, citing a statement from the Bank of Portugal,” with the transfer of the most significant portion of the activity and heritage of BES for New Bank that failed to meet the conditions to exercise their activity autonomously or to continue to operate in the market under normal conditions’ measures with effect from August 3.

Since then, the Bank of Portugal took control of BES and announced the separation of the institution into two, the bad bank (‘bad bank’) and the New Bank.

As regards the ‘bad bank’, the board of directors of the central bank also banned the “granting of credit and investment of funds in any kind of assets, except to the extent that this use of funds is necessary for the preservation and enhancement of its assets.”

The above ‘ bad bank ‘is also subject to layoff for a period of one year, “the observance of prudential standards and timely fulfillment of obligations previously incurred, except if such compliance is indispensable for the preservation and enhancement of its assets, in which case Banco de Portugal may authorize the necessary operations. “

New Bank gets deposits and credits from banks in Miami and Libya

Deposits and Credits Espírito Santo Bank (Miami, USA) and Aman Bank (Libya) are in the New Bank (which holds the assets considered ‘not problematic’), as happened with BES Angola, still according to the Bank’s decision to Portugal.

The goal is, according to a statement from the supervisor and banking regulator announced on Monday evening, “without prejudice to the commercial and banking operations between New Bank and the entities concerned. ‘

However, it adds up, do not transfer “any liabilities or contingencies for the New Bank having its source in those institutions”, especially those that are ‘due to fraud “or that violate the provisions of the regulator.

The New Bank will also require family members of former responsible and qualified shareholders of BES to prove the right to deposits held in the bank and who were ‘frozen’ in the ‘bad bank’.

This proof must be on the basis of occupation, income level and amount deposited.

In the note, the Bank of Portugal (BoP) states that the procedures are defined to adopt the New Bank regarding ‘funds deposited by spouses, parents or other relatives “of former officials from BES and qualified shareholders of the bank to prove that these funds” belong to them effectively. “

LikeTweet

No comments:

Post a Comment