The banking group is already under the supervision of the Bank of Portugal. Indeed, it is this regime that Montepio is undergoing a forensic audit. However, the mutual association, the parent bank, only now will be under the supervision of the ISP.
Montepio Group will be subject to tighter supervision . The General Montepio – Mutulista Association, the parent of all the interests of the group, will be under the supervision of the Insurance Institute of Portugal, the ISP
The Caixa Económica Montepio General, the institution. belongs to the mutualistic association responsible for banking, is already under the supervision of the Bank of Portugal. Two entities are well aware of the universe led by Tomás Correia (pictured) supervision.
Supervision of ISP
The State newspaper writes this Monday , August 18, the mutual association will be supervised by the ISP. So far, no regulatory body is responsible for reviewing their accounts.
The mutualistic association is the “holding” top Montepio universe. It is through her that the remaining entities arise, either the bank (Caixa Económica Montepio General) or the Lusitania insurance or asset management.
The mutualistic association has 530 000 members, who pay dues and contributions. She is responsible for managing the funds. The aim is that in the future, members will receive support:. “By ensuring the receipt of assistance or a payment in cash”
Bank forensic audit
The General Savings Montepio bank is already under the purview of the Bank of Portugal for several years. Indeed, it is in this regime that the bank is at present the subject of a forensic audit, an instrument that the governor says he wants to use on a regular basis and without criminal evidence. The news of the audit, which began on 25 July, was advanced by RTP last Friday.
It was already known that in addition to the audit of Banco Espírito Santo, there would be three other ongoing audits of smaller gravity, although the governor Carlos Costa has never confirmed any of them.
Montepio rejects that there is any criminal evidence. The Economic Daily, the official source of financial institution stated that “there is no relationship between these acts of supervision and, I quote, ‘strong suspicions of criminal offenses.’”
On Friday, RTP wrote that the audit made by the auditor PricewaterhouseCoopers, was due to links to the Holy Spirit Group. At Lusa, also on Friday, Montepio stressed that “forensic audits are customary practices of the regulator.” “This is not about convictions and enroll in prevention activities designed to identify the adequacy of procedures of the agents. This action relates to past years, not the last two,” he added.
The institution led by Thomas Correia had already advanced in his semi-annual report that it had decided to increase its provisions and impairments in 165 million year on year, to € 292 million. The strengthening of this financial cushion will serve the institution face any losses related to GES. “Caixa Económica Montepio General held a very conservative judgment of their exposure to the companies of the GES to accommodate, already in its half-yearly accounts, the resulting effects of losses from those credits,” reads the semiannual report company.
The Public has written that exposure group (and not just the bank) to the universe Holy Spirit could rise to 200 million euros, given that there will be more risk in the insurance and investment funds .
A forensic audit can, according to the same newspaper, look into the risk associated with trade relationship with Ongoing. In 2013, advanced the SIC, Montepio would have about € 2 billion unsecured loans.
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