Cyprus Popular Bank
The Laiki Bank ( LB, English:. Cyprus Popular Bank, CPB, 2006-2011 Marfin Popular Bank, MPB) is the second largest banking group in the Republic of Cyprus ( Bank of Cyprus is the largest ). She had a market share of 16 % in bonds and 14.4 % in deposits in September 2012. Since 30 June 2012, she is one of 84% of the state. Its shares are traded on the stock market of Cyprus and the Athens Stock Exchange.
The Laiki Bank had in 2008 a branch network of a total of 478 branches in Cyprus, Greece ( " Laiki Bank"), Russia, Ukraine, Romania, Serbia, the UK and Malta. The name is Greek for Laiki people, the name of Laiki Bank could therefore mutatis mutandis be translated as " People's Bank".
On March 25, 2013 were approved at a special summit of EU finance ministers in the restructuring of the financial sector in Cyprus smashing the bank.
History
- In 2008, she completed the acquisition of a little over half of the shares of Rosprombank in Russia. In the same year there was a cooperation of the great French life insurer CNP Assurances, the CNP Marfin Insurances.
- In 2010 she sold 85% of Laiki Bank Australia to Bank of Beirut - the Australian branch was called then Beirut Hellenic Bank.
- 2010 enabled the Bank Electronic Trading in Cyprus.
- 2012, the Bank was mainly due to their strong commitment in Greece and the Greek financial crisis ( and the associated debt cut ) into financial difficulties. Cyprus took over 85 % of the shares in order to bring within the scope of EU requirements, the equity ratio to 9%. In the year 2011, the bank balance was still claims to be 53% held by institutional investors is 37% privately held.
Cyprus crisis in March 2013
In March 2013, all banks are closed in the Republic more than a week ( up to and including Wednesday, March 27, 2013 ). 28.7 billion euros ( 42 percent of assets ) lie on accounts with more than 500,000 euros credit.
Reason for the closure were ongoing negotiations between the Government of Cyprus to the EU and Russia on a bailout to avert a sovereign default of the Republic and / or bankruptcies Cypriot banks.
The EU condition for the loan was that savers with about 6 billion euros to contribute to the costs of the rescue of the Cypriot banks. Savers had previously benefited from higher than average interest rates. However, the Cypriot Parliament rejected the bailout package.
According to statistics of the Bank for International Settlements (BIS ) had the Cypriot banks end of September 2012, only $ 441 million debt to foreign banks ( for comparison: Spanish banks had $ 132 billion ). The otherwise always feared contagion effects for banks in other countries would be so small in the case of Cyprus.
German Finance Minister Schaeuble said the business model of the Cypriot banks failed and said on March 19, 2013, Cyprus was to blame for his situation.
The Cypriot Central Bank met on March 21, 2013 the first concrete decisions for the rehabilitation of distressed commercial banks. Thus the Laiki Bank should be saved from collapse, said the head of the Central Bank of Cyprus, Panicos Demetriades.
The Laiki Bank will split into a functional and a "bad bank ," said a spokeswoman for the bank. According to information from the news agency dpa is the "good bank" include all deposits up to 100,000 euros and a portion of the buildings and the loans that are serviced normally. This part is to be merged with the Bank of Cyprus. The bad bank should include the uncertain credit and the unused building. An insolvency practitioner will then try to redeem from the sale of buildings and acquisition of the uncertain cash loans and creditors to operate with higher deposits.
On Friday, March 21, 2013, the Parliament of Cyprus decided a legal basis for the closure of banks.
On March 25 it was announced after a special summit of EU finance ministers that the restructuring of the financial sector of Cyprus, Laiki Bank to be fully settled .. The viable part of Laiki Bank, with total deposits less than 100,000 euros is on the Bank of Cyprus transferred, which will also the proportion of Laiki Bank from a total of 9 billion euros of debt from emergency loans the central bank. Creditors, major customers and shareholders lose receivables in the amount of estimated 4.2 billion euros. The agreement is still subject to approval by the parliaments of the participating European countries.
Others
The Laiki Bank is a member of the Euro Banking Association.