Nemea Bank

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This topic contains 9 replies, has 4 voices, and was last updated by  SPAD S.XIII 3 months, 4 weeks ago.

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  • #3491

    Streber
    Keymaster

    Pretty sure there was a thread about Nemea Bank on the old forums. Since there have been some recent developments and interest is still pretty high, I figured I’ll start a new one.

    MFSA on the 20th of January issued a statement on Nemea Bank, where it proposes to the ECB that the banking license for Nemea Bank be revoked.

    http://www.mfsa.com.mt/pages/announcement.aspx?id=8150

    The public notice contains a quick recap of what’s happened so far. There is also a Q&A document involved which answers some immediate questions.

    #4035

    Streber
    Keymaster

    The ECB approved of the request and MFSA revoked Nemea Bank’s license on the 23rd of March.

    #4160

    cutler
    Participant

    Looks like clients have started to receive their deposits via the Maltese Depositor Compensation Scheme. Two weeks delay from when the license was revoked isn’t bad.

    https://nomadgate.com/nemea-loses-banking-license/

    #4161

    Streber
    Keymaster

    The owners are probably going to try to appeal the decision but if they do, it’s unlikely they’ll see a different outcome.

    Good to see that the MFSA is handling the deposit compensation scheme payouts so quickly.

    #4200

    IntFreedom
    Participant

    I can confirm, that Funds have been received on the 7th of April, through the Depositor Compensation Scheme.

    • This reply was modified 4 months, 1 week ago by  IntFreedom.
    #4261

    SPAD S.XIII
    Participant

    Hi Streber,

    Seemed like a such a nice bank. There a way to salvage the licenses in a case like this? Is it pointless to even consider this? What is the best the owners could hope for at this time. I was always under the impression Nemea just had a few regulatory hurdles but that was all. What a shame…

    SPADCOS

    #4263

    Streber
    Keymaster

    In situations like this, banks usually end up shutting down or being sold to new owners. For whatever reason, it seems like sale was not considered as a serious option in this case or maybe the owners refused to consider it, so the only course of action left was revoking the license. Without a license, a bank is practically worthless.

    #4264

    SPAD S.XIII
    Participant

    Got it. So there is no other “concern(s)” that plagues the bank other than they were not to strong from a regulatory perspective. Meaning, if a group of new owners that were wired in bought the bank they could start anew? This correct?

    #4266

    Streber
    Keymaster

    From the information has been made publicly available, Nemea Bank was suspended for shortcomings in customer due diligence. This can either mean they took on a couple of really unsavory clients or simply failed to properly identify account holders in general.

    It’s very unlikely that anyone would buy Nemea at this point. A bank that doesn’t have a license to engage in banking activities is essentially just a company with a bunch of liabilities (the account balances, for one), a bunch of customers, and no way of offering any financial services.

    If you are a buyer looking to buy a bank, you’d rather buy a bank that has a functioning license rather than buy a dead bank and try to get that same bank to get a new license. Or just start a new bank from scratch. The process will be very similar.

    #4272

    SPAD S.XIII
    Participant

    Very well noted. I was wondering about this… Excellent review of this situation. Thank you!

    SPADCOS##

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