European Central Bank withdraws Nemea Bank’s licence

The European Central Bank has withdrawn Nemea Bank’s licence following the recommendation made by the Maltese financial regulator in January

jeanelle_mifsud
Jeanelle Mifsud
24 March 2017, 1:57pm
The European Central Bank has withdrawn online-only Nemea Bank’s licence following the recommendation made by the financial regulator Malta Financial Services Authority (MFSA) in January.

The ECB had flagged “serious regulatory concerns” inside the bank, which resulted in the online-only bank being placed under the control of PricewaterhouseCoopers as a ‘competent person’ in April 2016 to ensure the proper protection of depositors and bank’s clients.

The MFSA had said that discussions were being conducted with the bank’s shareholders to ensure the necessary action to address regulatory shortcomings, but said that “despite repeated requests”, no tangible progress had been registered to fulfil these regulatory requirements.

A prohibition of the withdrawal of deposits had been put in place as a precautionary measure pending the ECB’s final decision. Deposit withdrawals from the bank remain frozen, until advised otherwise by the MFSA.

PriceWaterHouseCoopers also remain in charge of the bank's assets.

Nemea specialised in providing banking and investment services to individuals, businesses, institutions and high net worth individuals across the European economic area.