The Bank of Lithuania revoked the licence of AB bankas SNORAS and will apply to court regarding bankruptcy

Published: 25 November 2011 y., Friday

The Board of the Bank of Lithuania recognised AB bankas SNORAS as insolvent and will apply to the Vilnius District Court regarding the initiation of the bankruptcy case. Due to the initiation of the bankruptcy case, the licence issued to the bank by the Bank of Lithuania shall be permanently revoked.

The Board of the Bank of Lithuania took the decision after analysing and assessing the conclusion and proposals regarding the prospects the bank’s further operation presented by AB bankas SNORAS temporary administrator.

The analysis performed by the temporary administrator of AB bankas SNORAS revealed that the bank’s financial situation is significantly worse than identified, when the Board of the Bank of Lithuania took the decision on 16 November 2011 to appoint a temporary administrator to AB bankas SNORAS and to apply temporary preventive measures for the protection of the bank’s assets.

According to the conclusion submitted by the administrator and interim financial statements of AB bankas SNORAS, this bank’s net worth is significantly lower than the bank’s liabilities, therefore the bank is insolvent.

The Board thoroughly analysed the potential options for restoring the bank’s operation presented by the temporary administrator: the state’s financial injection to restore the current bank’s capital and operation, the assignment of the bank’s assets and liabilities to another already operating or state-established bank, which is envisaged by Article 761 of the Law on Banks, splitting the bank to create a possibility to protect the interests of uninsured creditors.

The comparative analysis of the bank restructuring options presented by the administrator revealed that the risk of subsequent failure of any newly created entity was too significant – there are no sufficient preconditions for a prompt restoration of profitable operation and large losses related to legal disputes are likely. Such risky bank rescue operations would cost taxpayers significantly more and would last much longer than the liquidation of AB bankas SNORAS.

Earlier Board resolutions, which allowed certain operations, were revoked.

After the entry into effect of the Resolution of the Board of the Bank of Lithuania, the deposit insurance mechanism starts operating. Deposits shall be compensated in accordance with the conditions established by the Republic of Lithuania Law on Insurance of Deposits and Liabilities to Investors – the insured amount for natural persons and legal entities is up to LTL 345,280. The Law also stipulates that deposits should be compensated in 20 business days. Deposit insurance enterprise may extend this term by 10 business days.

Copying, publishing, announcing any information from the portal without written permission of editorial office is prohibited.

Facebook Comments

New comment




Associated articles

Diebold Nixdorf Unveils World's Smallest Self-Checkout Concept To Drive Future Of Connected Commerce For Retailers

Diebold Nixdorf, a leading provider of innovative self-service solutions to top retailers, is showcasing a new self-checkout concept for the retail market. more »

One of the best fiscal years and solid start for Diebold Nixdorf

Wincor Nixdorf AG met its revenue target for fiscal 2015/2016, which was on a par with the guidance figure it had previously revised upward, and exceeded the mark set with regard to operating profit. more »

Diebold Nixdorf Era Begins

Diebold Nixdorf begins a new era today – leading the financial and retail industries with the innovation necessary to advance in a highly interconnected, changing world. more »

Rapid pace of restructuring maintained after first nine months

Having completed the first nine months of its current fiscal year, Wincor Nixdorf AG remains on a clear path of growth and is reaping the rewards of its restructuring program more rapidly than originally projected. more »

Wincor Nixdorf and Aisino establish joint venture to co-market IT solutions for banks and retailers in China

Aisino Corporation, a Chinese company that specializes in intelligent anti-forgery tax control systems, EFT POS solutions, financial IC cards, bill receipt printing solutions and public IT security solutions, has established a joint venture (JV) with Wincor Nixdorf in China to develop, produce and market IT solutions for banking and retail companies in China. more »

Wincor Nixdorf crowned Top Retail Supplier again

Having won the Top Retail Supplier award in 2015, Wincor Nixdorf has won it again this year. This award is conferred on IT companies that offer retailers an overall package of excellent solutions, and is run by Frankfurt-based Lebensmittelzeitung, a newspaper for the grocery segment, and by Cologne-based EHI Retail Institute. more »

The First Drive-Up ATM Installed in Belarus

ASB Belarusbank has installed an ATM right in one of the Minsk-based gas stations, offering drivers to withdraw cash or make other transactions without stepping out of their cars. more »

ATM for the digital natives target group wins the Red Dot Design Award

Wincor Nixdorf has received the renowned Red Dot Design Award for a new automated teller machine at which customers can withdraw cash via a smartphone or NFC card. more »

Wincor Nixdorf pursues fast-paced restructuring – substantial earnings growth in first six months

Wincor Nixdorf AG remains on a trajectory of growth after the first six months of the current fiscal year. The company has been reaping the rewards of its transformation program, which is being implemented in a determined manner. more »

SEB Bank Group’s in Lithuania Result in Q1 2016

According to preliminary data, unaudited net profit earned by AB SEB bankas over Q1 2016 was EUR 12.5 million, and that earned by the AB SEB bankas Group was EUR 11.3 million. more »