Laiki bench
| Laiki bench
|
|
|---|---|
 |
|
| legal form | Corporation |
| ISIN | CY0000200119 |
| founding | 1901 |
| resolution | 2013 |
| Seat |
Nicosia , Cyprus
|
| Branch | Banking |
| Website | www.laiki.com |
The Laiki Bank (LB, Cyprus Popular Bank , CPB, 2006 to 2011 Marfin Popular Bank , MPB) was the second largest banking group in the Republic of Cyprus (the Bank of Cyprus is the largest). In September 2012 it had a market share of 16% for bonds and 14.4% for deposits. As of June 30, 2012, 84% of it belongs to the state. Its shares were traded on the Cyprus Stock Exchange and the Athens Stock Exchange.
In 2008, Laiki Bank had a network of 478 branches in the Republic of Cyprus, Greece (“Laïki Bank”), Russia, Ukraine, Romania, Serbia, Great Britain and Malta. The name Laiki stands for people in Greek , so the name Laiki Bank could be translated as “Volksbank”.
On March 25, 2013, at a special summit of EU finance ministers as part of the restructuring of the financial sector in the Republic of Cyprus, it was decided to break up the bank. The viable part of the Laiki Bank including all deposits under 100,000 euros was transferred to the Bank of Cyprus.
history
- In 1901 four Limassol citizens - Agathoclis Francoudis, Ioannis Kyriakides, Christodoulos Sozos and Neoklis Ioannides - founded the Limassol People's Savings Bank. 1924 deleted the bank -spar- from its name. The bank was the first company in Cyprus to be publicly traded.
- In 1967 the bank changed its name (Cyprus Laiki Bank, for example: People's Bank of Cyprus) because it was no longer only active in Limassol.
- In 1969 branches opened in Nicosia and Famagusta , in 1970 in Paphos and Larnaka . In the 1970s, Midland Bank bought 22% of the bank's shares. The following year, the bank moved its headquarters to Nicosia.
- In 1972 HSBC acquired 21% of the bank, which enabled rapid expansion
- 1974 Establishment of a branch in London
- 1983 Acquisition of the business activities of the 'Grindlays Bank' in the area that is under the control of the Republic of Cyprus (= southern part of the island).
- 1992 They set up the first branch in Athens through the European Popular Bank (EPB), in which they hold 58% of the shares; other shareholders include HSBC (it bought Midland Bank in 1992) and Greek and Cypriot investors.
- 1995 Opening of a branch in South Africa and one in Toronto (Canada)
- 1996 Opening of a branch in Australia
- 1997 Opening of branches in Serbia and Russia
- 1998 New York branch opened.
- 2000 Change of name to Laiki Group
- 2001 Establishment of a subsidiary in Australia with five branches.
- 2005 Acquisition of Centrobank in Serbia and establishment of a branch in Guernsey . Guernsey is an island in the English Channel; it is not part of the EU and is considered a tax haven .
- 2006 The Greek Marfin Investment Group took over HSBC's shares in Laiki Bank and took control through further acquisitions. The bank was renamed Marfin Popular Bank (it had that name until 2011).
- 2007 Purchase of 50.12% of the shares of 'AS SBM Pank', a bank in Estonia .
- Purchase for US $ 156 million 99.2% of the shares in 'Marine Transport Bank' Ukraine . This bank was founded in 1993 under the name 'Marine Trade Bank' and was renamed 'Marine Transport Bank' in 1996. Its headquarters are in Odessa ; in 2007 it had around 86 branches.
- Acquisition of 43% of Lombard Bank in Malta from BSI , thus holding a 49% stake in Lombard Bank.
- In 2008 they completed the takeover of just over half the shares in Rosprombank in Russia. In the same year, the large French life insurer CNP Assurances , CNP-Marfin Insurances , entered into cooperation .
- In 2010 they sold 85% of Laiki Bank Australia to the Bank of Beirut - the Australian branch then called itself Beirut Hellenic Bank.
- In 2010 the bank enabled electronic commerce in the Republic of Cyprus.
- In 2011 MPB sold the majority of its shares in its Estonian branch bank and again took on the historical name Laiki Bank / Cyprus Popular Bank.
- In 2012, the bank ran into financial difficulties mainly due to its strong exposure to Greece and the Greek financial crisis (and the related haircut). The Republic of Cyprus took over 85% of the shares in order to bring the equity ratio to 9% within the framework of EU requirements. In the 2011 annual balance sheet, 53% of the bank was still owned by institutional investors and 37% in private free float.
- In 2013 the Greek branch of the bank was again called Cyprus Popular Bank.
Financial crisis in the Republic of Cyprus
In March 2013, all banks in the republic were closed for more than a week (up to and including Wednesday, March 27, 2013). 28.7 billion euros (42 percent of the balance) are in accounts with more than 500,000 euros. The reason for the closure was ongoing negotiations between the government of the Republic of Cyprus, the EU and Russia on a rescue package to avert state bankruptcy of the republic and / or the bankruptcy of Cypriot banks.
The condition of the EU for the loan was that savers share around 6 billion euros in the cost of bailing out the Cypriot banks. Savers had previously benefited from above-average interest rates. However, the Cypriot parliament rejected the rescue package.
According to statistics from the Bank for International Settlements (BIS), Cypriot banks only owed $ 441 million to foreign banks at the end of September 2012 (for comparison: Spanish banks had $ 132 billion). The contagion effects for banks in other countries, which are always feared, would therefore be minor in the case of the Republic of Cyprus.
Federal Finance Minister Schäuble declared the business model of the Cypriot banks to have failed and said on March 19, 2013 that Cyprus was to blame for its situation.
On March 21, 2013, the Central Bank of Cyprus made the first concrete decisions to reorganize ailing commercial banks. This should save the Laiki Bank from collapse, said the head of the Cypriot central bank, Panikos Demetriades.
The Laiki Bank will be split into a functional and a "bad bank", said a spokeswoman for the bank. According to information from the dpa news agency, the “good bank” should contain all cash deposits up to 100,000 euros as well as some of the buildings and the loans that are normally serviced. This part is to be merged with the Bank of Cyprus. The bad bank is supposed to cover the unsecured loans and the buildings that are not needed. An insolvency administrator should then try to redeem money from the sale of the buildings and the collection of the unsecured loans and to serve creditors with higher deposits.
On Friday, March 21, 2013, the parliament of the Republic of Cyprus passed a legal basis for the closure of banks.
On March 25, after a special summit of the EU finance ministers, it was announced that the Laiki Bank would be completely wound up as part of the restructuring of the financial sector in the Republic of Cyprus .
The European Central Bank then capped the ELA emergency loans . Although Laiki Bank had already received 9.5 billion of the 11 billion ELA funds granted to the Republic of Cyprus, that meant bankruptcy.
The viable part of the Laiki Bank, including all deposits under 100,000 euros, was transferred to the Bank of Cyprus, which also took over the Laiki Bank's share of a total of 9.5 billion euros in debt from emergency loans from the central bank . Creditors, major customers and shareholders had to forego claims amounting to an estimated 4.2 billion euros.
Others
Laiki Bank was a member of the Euro Banking Association .
Web links
- www.laiki.com (homepage)
- Central Bank of Cyprus: Bank lending survey (January 2013) (PDF; 557 kB)
- January 2013: Marfin Investment Group's chairman announced that the company will resort to the courts against the Cypriot state, seeking: “the restoration of the private status of Laiki Bank and correction of all illegalities and discrimination by which the state acquired control of Laiki Bank” .
Individual evidence
- ↑ Laiki Bank - ANNOUNCEMENT (March 29, 2013) ( Memento of the original from March 26, 2015 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Bank history on the official website ( Memento of the original from March 30, 2013 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ www.marfinbank.ee ( Memento of the original from April 16, 2013 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ^ Marfin Popular Bank acquires bank in Estonia (June 15, 2007) ( Memento of September 28, 2007 in the Internet Archive )
- ↑ Marfin Bank (MARINE TRANSPORT BANK)
- ↑ Annual report 2011, pdf
- ↑ a b Cypriots are already standing in front of the bank branches
- ↑ Despite the special rule for small savers: Cyprus' parliament wants to stop the compulsory levy
- ^ "Cypriot Parliament rejects the rescue package" , FAZ.net, March 19, 2013
- ↑ spiegel.de March 20, 2013: The threat of national bankruptcy of Cyprus: under the control of the banks
- ^ FAZ March 20, 2013: Schäuble: Cyprus has to change its business model
- ↑ Video heute journal: Schäuble - “Cyprus is your own fault” (March 19, 2013, 9:14 pm, 4:55 min.) In the ZDFmediathek , accessed on February 3, 2014.
- ↑ www.centralbank.gov.cy ( Memento of the original from August 28, 2008 in the Internet Archive ) Info: The archive link was automatically inserted and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ handelsblatt.com: Cyprus National Bank splits commercial bank
- ↑ spiegel.de March 25, 2013: Bankruptcy averted: EU finance ministers approve rescue plan for Cyprus
- ↑ Carsten Volkery rescue package for Cyprus: Bye Bye Banks Island , Spiegel Online, March 25, 2013
- ↑ Hans-Werner Sinn: “The ECB is dragging bankruptcy”. The Munich economist Hans Werner Sinn warns of a huge flight of capital from Greece. The wealthy, according to his allegation, use the emergency loans of the European Central Bank. (Print). In: No. 33.Süddeutsche Zeitung, February 10, 2015, p. 18 , accessed on February 12, 2015 .
- ↑ Bankruptcy averted: ministers decide on rescue plan for Cyprus , Spiegel Online, March 25, 2013
