Latvian court declares PNB Bank insolvent

A Latvian court declared PNB Bank, Latvia’s sixth biggest lender, insolvent, following the bank’s suspension by the ECB, Bloomberg reported. The decision was taken on Thursday, September 12, according to information of Latvia’s Financial and Capital Market Commission and follows the conclusion of the ECB in August that PNB is failing or likely to fail because of insufficient capital.

We recall that following the suspension in August, Finance Minister Reirs argued the decision of the ECB to close down PNB Bank will not impact the Latvian banking sector. Reirs explained that the situation at PNB is related to its chosen business model and business decisions it has made, noting that the situation has nothing to do with activities being currently carried out in order to straighten out the financial sector.

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