FCMC authorises the reorganisation of AS PrivatBank, the business of the commercial company will no longer be linked to the provision of credit institution services

25.11.2022
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On 25 November 2022, the Board of the Financial and Capital Market Commission (FCMC) adopted a decision to authorise the reorganisation of AS PrivatBank by re-registering it as a commercial company the activities of which are not related to the activities of credit institution. As from the entry into force of this decision, the licence issued to AS PrivatBank for the operation of credit institution ceases to be valid.

This decision was taken by the FCMC considering the decision adopted by the extraordinary shareholders’ meeting held on 30 September 2022 to terminate the activities of AS PrivatBank as a credit institution and take the necessary steps to withdraw the credit institution operating licence. AS PrivatBank has ensured the protection of its customers’ interests and kept them informed, as well as fulfilled its obligations to depositors.

AS PrivatBank, in line with the strategy adopted by its shareholders in 2022, has gradually reduced the scope of its activities, since in accordance with the Credit Institution Law the withdrawal of a credit institution licence is possible if the credit institution no longer has deposits within the meaning of the Credit Institution Law.

As announced earlier, the FCMC Board adopted a decision on 9 August 2022 to authorise AS PrivatBank to transfer part of the credit institution undertaking of AS PrivatBank to AS Industra Bank in accordance with the credit institution undertaking transfer agreement concluded by both parties. As a result of the transaction, AS Industra Bank took 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.

AS PrivatBank operated in Latvia since 22 August 2007 as a specialised bank focusing on the provision of services related to specific products, particularly credits, leasing and deposits.

 

Further information:
Dace Jansone
Head of the FCMC’s Communications Division
Phone: +371 67774808
E-mail: dace.jansone@fktk.lv

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