Mon. Feb 17th, 2020

Venezuelan regulator intervenes bank after measures to international subsidiaries

The Superintendence of the Institutions of the Banking Sector of Venezuela (Sudeban) informed this Thursday of the "administrative" intervention of the BOD entity to guarantee the "protection" of the savers, and after similar decisions against the group's subsidiaries in Panama and Curaçao .

The BOD measure – Western Discount Bank – applies one hundred and twenty bank business days and is "extendable", according to the resolution of the regulator.

The intervention prohibits the BOD from making new investments, decreeing dividend payments, assigning or transferring real estate and opening new offices abroad.

In addition, the regulator will appoint officials who "will have veto power on the board of directors and all committees and with full access to all administrative areas of the bank."

The president of the BOD Group, Víctor Vargas, later said in a press conference that an "administrative" measure weighs on the bank and not an intervention.

"The BOD is not intervened, it is operating normally (…), the BOD is fully operational, directed by its president, its board of directors and its executives, functioning normally. It has no intervention measure of any nature," assured.

According to the manager, the regulator's decision is normal and "is intended to supervise the institution" in the presumption of irregularities that, he said, do not exist.

Regarding the limitations imposed on the BOD, he said that they are specific and "have no major impact on the operation of the bank."

"These are measures that go more for the booklet than anything else, but that do not affect the normal operation of the bank at all," he insisted.

The BOD Group is made up of 16 financial entities based in several countries in the region, including All Bank of Panama and Banco Orinoco, of Curaçao.

The Superintendence of Banks of Panama (SBP) intervened on Monday the operations of AllBank, Corp., in order to protect and safeguard the interests of the depositors of the bank.

This decision was taken as a result of a series of factors that jeopardize the security of the credits entrusted by the clients of said bank, the Superintendency of Banks indicated in a public statement.

He also recalled that one of the banks owned by the main shareholder of AllBank in the jurisdiction of Curaçao (Banco del Orinoco, NV), where a quarter of its liquid assets is placed and provides custody services for a third of the investments in values ​​its productive assets, was intervened on September 5 by the Centrale Bank van Curacao in Sint Maarten (CBCS).

Vargas said, however, that these two entities are not intervened either, and that the Bank of the Orinoco entered into liquidation by decision of its shareholders and has the resources to return 100% of the money to the savers.

Likewise, he informed that AllBank and Banco Orinoco are "independent" of the BOD, although he owns 18% of the shares of the curazoleña institution.

But the BOD with respect to AllBank has no "shareholding" or shareholding of any nature, "he said.

"Our institutions are individual in each country, the banks among them do not own each other, they are independent," he said.

In Venezuela, BOD has almost 16,000 employees among its investments in banking, insurance, funds and the oil and construction industries.

In the local financial market, it occupies the seventh position in deposit collection, and the fifth in total assets.

. (tagsToTranslate) Venezuelan (t) regulator (t) intervenes (t) subsidiaries (t) international

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