ECB lets RCB Bank sell loan portfolio; restricts rest of business (updated)

Hellenic Bank Pcl

24/03/2022 07:48

(Adds RCB statement)
    FRANKFURT, March 24 (Reuters) - The European Central Bank
has allowed Cyprus-based lender RCB  to sell a part of its
performing loan portfolio to Hellenic Bank Public Company Ltd.,
but restricted the rest of the firm's business as it plans to
phase out banking operations, it said on Thursday.
    "The bank's plan, which includes the full repayment of all
depositors, follows the impact of geopolitical risks on its
operations since the Russian invasion of Ukraine," the ECB said.
    RCB, which started operations in 1995 mainly geared towards
the Russian business community on the island, said it would
cease entering new business with clients effective Thursday.
    The ECB also appointed a temporary administrator to oversee
RCB Bank, which will work with existing management, the ECB
said.
    Russian bank VTB agreed in February to sell its 46% share in
RCB Bank to other existing shareholders. The bank on Thursday
said it would transform the firm into a regulated asset
management company.
    "Although RCB has been, and remains abundant in liquidity
and capital, the on-going and extremely volatile geopolitical
situation requires it to transform and adopt a new strategy -
phasing out banking operations, while at the same time ensuring
that the best interests of its clients are secured," RCB said in
a statement.

 (Reporting by Balazs Koranyi; Editing by Alex Richardson)
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