How to withdraw your money from PNB Banka?
What happened to PNB Banka?
As we wrote earlier, the Financial and Capital Market Commission (FCMC, FKTK), taking into account the decisions of the European Central Bank (ECB) and the European Single Settlement Board (SRB), suspended the provision of financial services to AS “PNB Banka” (formerly Norvik Banka) and made a decision about unavailability of deposits.
PNB Banka is a universal bank that had 99,600 clients at the end of 2018, 91,400 of which were locals and 40,000 were elderly people who received pensions and social benefits into their bank accounts. According to the information provided by the bank, at the end of March 2019, the total amount of deposits of PNB banka amounted to 472 million euros.
As of December 31, 2018, 891 people worked in the PNB Banka group, including 538 people in the bank.
At the end of 2018, in terms of assets, PNB Banka was the sixth in Latvia, and the total assets of the bank group amounted to 542 million euros.
The bank's bank accounts are currently blocked, cards do not work, customers are unable to complete any transactions. The Internet bank works only for viewing, the generation of bank statements is available.
The Finance Business Service team will help you understand the situation and understand how to proceed.
I had money left on my accounts with PNB Banka.
What should I do now?
If the amount of your funds on bank accounts does not exceed 100,000 euros (according to FKTK, such clients are 99.2%), they are protected by the Deposit Guarantee Fund (Noguldījumu garantiju fonds). Thus, Latvia guarantees the payment of the entire amount to clients from the fund's resources.
If the deposit amount is greater, then 100,000 euros will be paid out in any case, and the remaining amount can be claimed as a creditor of the bank in the liquidation process.
In addition, the new shareholders and the Management Board of PNB Banka believe that at present the bank is solvent and has good liquidity. A plan was provided to inject additional capital in the amount of 146 million euros. The new shareholders and the Board of PNB Banka are convinced that the continuation of the bank’s activities is possible, and this will benefit more than 100,000 customers, 500 employees, bank depositors, as well as Latvia and its tax revenues
What does the €100,000 limit cover?
This is the total amount on all accounts of the client - including salary or savings.
What about my securities, which are kept in the bank?
PNB Banka keeps clients
When can I withdraw my money from the bank?
Of course, there is hope that the new shareholders will be able to find a solution and the provision of financial services of PNB Banka (as well as the availability of deposits) will be restored. According to unofficial information, clarity on this issue should appear before the end of August.
At the same time, the FCMC made a decision on the procedure for paying guaranteed compensations to PNB Banka customers starting from August 22, entrusting the payment of guaranteed compensations to Citadele banka JSC. Thus, the payment of guaranteed compensations to PNB Banka customers will begin on the fifth business day (even earlier than the deadline stipulated by law - starting from the eighth business day) from the moment of unavailability of deposits, which was stated by the FCMC by decision of 15.08.2019. Citadele has already established a mechanism for paying out guaranteed compensations and the most favorable conditions are also offered.
PNB Banka customers need approximately EUR 279 million to pay out guaranteed compensation. The payment of guaranteed compensation will be made entirely from the Latvian Deposit Guarantee Fund (NGF), and no funds from the state budget will be needed for this purpose. 99.2% of PNB Banka clients will receive their deposits in full in the form of guaranteed compensation. Of these, 95% are local clients, while only 4.2% are foreign clients.
Qualified legal assistance to obtain guaranteed compensation
Finance Business Service lawyers can help you open an account with another financial institution, arrange for a guaranteed refund, submit the necessary applications and perform other actions necessary to recover assets.
Also, our lawyers will help you legally structure the opening of new accounts for your non-resident companies and the return of funds from the point of view of the currency and tax regulation of the countries of residence of the beneficiaries of these companies. Moreover, the Finance Business Service company has the necessary experience of full support in the return of assets of ABLV bank clients.
You can get more detailed information after signing up for a consultation by e-mail: email@example.com or by phone: +38 044 451 50 50.Call