Nemea Bank

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This topic contains 9 replies, has 4 voices, and was last updated by Profile photo of SPAD S.XIII SPAD S.XIII 1 week, 3 days ago.

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  • #3491
    Profile photo of Streber
    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
    Profile photo of Streber
    Streber
    Keymaster

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

    #4160
    Profile photo of cutler
    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 Two weeks delay from when the license was revoked isn’t bad.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
    Profile photo of Streber
    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
    Profile photo of IntFreedom
    IntFreedom
    Participant

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

    • This reply was modified 2 weeks, 5 days ago by Profile photo of IntFreedom IntFreedom.
    #4261
    Profile photo of SPAD S.XIII
    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
    Profile photo of Streber
    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
    Profile photo of SPAD S.XIII
    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
    Profile photo of Streber
    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
    Profile photo of SPAD S.XIII
    SPAD S.XIII
    Participant

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

    SPADCOS##

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