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Closure Of Latvian PNB Bank Shows Regulatory Process Working Says PM Karins

Closure Of Latvian PNB Bank Shows Regulatory Process Working Says PM Karins
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Riga old town seen from Daugava

The EU and Latvian regulators have closed Riga’s PNB Bank due to insolvency. Allegations of corruption inside the financial institution were prevalent. The European Central Bank declared PNB “suffered serious deterioration in its capital situation” and assets were smaller than it’s liabilities.

‘The situation within the banking sector is stable, and these decisions show to an effective and responsible supervision of the banking sector. The Latvian financial sector is being cleansed and becoming safer,” the prime minister said.

Karins said that in the near future the FKTK and the responsible institutions will inform the bank’s clients on the necessary information regarding payouts from the Deposit Guarantee Fund.

As reported, the FKTK last night decided to halt the operations of PNB Banka (formerly Norvik Banka), LETA found out from the FKTK, reported The Baltic Times.

“We are aware that this news is unexpected for the bank’s customers, but we can confirm that the FKTK is working to find the most convenient and efficient solution to start the payout of guaranteed compensation to the customers as soon as possible, covering the customer funds deposited in the bank up to 100 000 euro. In the coming days, 99.2 percent of depositors will be able to start receiving their money deposited in the bank, which will be fully covered by the funds of the Deposit Guarantee Fund,” FKTK Chairperson Kristine Cernaja-Mezmale emphasized.

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