Getin Noble Bank. BFG started restructuring Getin Noble Bank – what does it mean for clients?

Getin Noble Bank will undergo forced restructuring – the Bank Guarantee Fund (BFG) informed on Friday. The bank’s operations are to be transferred to a joint BFG bank and the Commercial Bank Protection System, established by eight commercial banks. As announced, the bank to which Getin Noble Bank’s operations will be transferred will ultimately operate under the name VeloBank. We explain what this means for customers.

The BFG announced on Friday that, in line with the principle of covering losses by the owners of a bank at risk of bankruptcy, the shares of Getin Noble Bank were redeemed, as were the subordinated bonds.

As announced, the activities of Getin Noble Bank on October 3, 2022 will be transferred to Bank BFG SA, the owner of which, from October 3, will be, in addition to the Bank Guarantee Fund (BFG), also the Commercial Bank Protection System (SOBK), established by the eight largest commercial banks operating in Poland . The list includes: Alior Bank SA, Bank Millennium SA, Bank Pekao SA, BNP Paribas Bank Polska SA, ING Bank Śląski SA, mBank SA, Powszechna Kasa Oszczędności Bank Polski SA, Santander Bank Polska SA

SOBK will cover 49 percent. shares created by the BFG Bank Fund, the remaining 51 percent. will have BFG.

“The transfer of Getin Noble Bank SA’s operations takes place as part of the forced restructuring initiated on September 30, 2022 by the Bank Guarantee Fund due to the very bad capital situation of Getin Noble Bank SA” – it was written in the release.

What does this mean for customers?

The Bank Guarantee Fund said in a statement that “nothing has changed for GNB customers”.

“All clients are and will be served as before, they have uninterrupted access to all their funds. This applies to all persons and entities that, as at September 30, 2022, are clients of Getin Noble Bank SA, including corporate clients, with of the public sector, as well as personal and private banking customers, “we read.

It was indicated that customers can use cards and ATMs. “Bank account numbers, login pages, passwords and internet banking logins remain unchanged” – emphasized.

Transfer of deposits and loans

The BFG announced that, among others, all deposits as well as loans in Polish currency.

Mortgage loans denominated in or indexed to foreign currencies (CHF, EUR, USD, JPY) are excluded from the transfer and remain with Getin Noble Bank.

Non-working loans are partially transferred.

The BFG announced that due to the forced restructuring of Getin Noble Bank, its clients do not have to take any action.

New name and rebranding

As we read in the announcement, ultimately the bank to which the activities of Getin Noble Bank SA will be transferred will operate under the name VeloBank SA “The process of registering the name change is in progress, and customers will be informed about the changes on an ongoing basis” – it was announced.

“The branches will operate under the existing names until they are rebranded to VeloBank SA” – added.

Restructuring cost

The Bank Guarantee Fund stated that the amount of PLN 10.34 billion of non-returnable support was allocated to the process of forced restructuring in the transfer of Getin Noble Bank’s business and to ensure uninterrupted service to Getin Noble Bank customers and the security of their funds. 6.87 billion of this amount comes from the BFG’s own funds, and PLN 3.47 billion is the involvement of SOBK funds.

The announcement indicated that “Getin Noble Bank SA has been continuously recording annual losses since 2016”. It was recalled that on April 29 this year. “the bank announced publicly that there was a risk of bankruptcy.”

“The estimate prepared by an independent entity – Deloitte Advisory spółka z ograniczoną odpowiedzialnością sp. K. Shows that Getin Noble Bank SA had negative equity at the level of PLN -3.6 billion, which means that the assets were not sufficient to cover liabilities” – added.

According to BFG assurances, “compulsory restructuring allows to protect all customer deposits in the amount of PLN 39.5 billion, including PLN 3.5 billion of deposits that could not be paid out under the BGF guarantee in the event of bankruptcy”.

Main photo source: Elzbieta Krzysztof / Shutterstock

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