It is the step that was needed to start the liquidation of Banco Espírito Santo
The banking license of the Bank Espirito Santo (BES) was revoked by the European Central Bank (ECB), now entering into liquidation, said today the Bank of Portugal.
“the European Central Bank revoked the authorization of Banco Espírito Santo, SA (BES ) for the exercise of the credit institution activity. the decision to withdraw the BES authorization implies the dissolution and the bank’s settlement entry, “reads the statement of the Bank of Portugal issued today.
with this withdrawal, the Bank of Portugal will now “require, under the law, with the competent court, the beginning of the judicial BES settlement”.
the statement ends with a governor’s thank you note Bank of Portugal to the Council Dobes Administration, led by Luís Máximo dos Santos – who recently also took over as manager of the Bank of Portugal – referring to “great dedication and competence demonstrated in the performance of their duties, in pioneering conditions and particularly complex” .
the revocation of the license for banking activity of BES, the entity that was with so-called ‘toxic assets’ family bank Holy Spirit was expected to happen until 03 August, when they spend two years since the resolution of the bank.
Although so far BES still have license, this could no longer perform the traditional activities of a bank, including receiving deposits and granting credit.
commonly called ‘bad bank’, BES closed the year 2015 with losses of 2.6 billion euros, with most of these was due to last December decision of the central bank over New Bank BES five no subordinated debt issues (senior) totaling 2.2 billion euros.
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