FCMC authorises AS Industra Bank to take over part of the assets and liabilities of AS PrivatBank

10.08.2022
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On 09.08.2022 the Board of the Financial and Capital Market Commission (FCMC) adopted a decision to authorise AS PrivatBank to transfer a part of the credit institution company AS PrivatBank to AS Industra Bank in accordance with the credit institution company transfer agreement concluded by both parties.

As a result of the transaction, AS Industra Bank will take over customer relations from AS PrivatBank, including the management of accounts of natural persons and legal entities, credit and leasing portfolios, deposits, as well as the securities owned by the bank.

Santa Purgaile, the Chairperson of the FCMC highlights: “The years 2021 and 2022 mark an active transformation process of the Latvian banking sector, which can be explained by the change of business model started in 2018 for those banks that previously focused on foreign customer service. One of the trends in the development of banking activity in this segment is consolidation, maintaining areas of activity that are competitive in the current conditions. We are pleased that AS PrivatBank and AS Industra Bank are implementing a transaction that strengthens the Latvian banking sector.”

The FCMC would like to draw attention to the fact that the customers of both banks retain all their previous obligations and rights arising from the concluded contracts.

In accordance with Section 59.2, Paragraph one of the Credit Institution Law, for the transition of the body of property subject to separation, the body of assets or liabilities or the body of standard contracts entered into with the credit institution customers of a credit institution undertaking or a part thereof into the ownership or use of another person the credit institution shall require the authorisation of the FCMC.

AS PrivatBank has been operating in Latvia since 1992, while AS Industra Bank has been operating in Latvia since 1994, currently focusing its activities on serving small and medium-sized enterprises of Latvia.

 

Further information:
Communications Division of the FCMC
Head Dace Jansone
T. 67774808
E. dace.jansone@fktk.lv

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