Following the decision by the European Central Bank to declare ABLV Bank, AS and its subsidiary ABLV Bank Luxembourg S.A. as ‘failing or likely to fail’, the Single Resolution Board (SRB) has decided that resolution action is not necessary as it is not in the public interest for these banks. As a consequence, the winding up of the banks will take place under the law of Latvia and Luxembourg, respectively.
The SRB concurred with the ECB’s assessment and concluded that there are no available supervisory or private sector measures which could prevent the failure of the banks. Upon careful consideration whether resolution action is necessary and proportionate to safeguard the objectives set out in the EU resolution framework, the SRB has today concluded that for these two banks, resolution action is not in the public interest. In particular, neither of these banks provide critical functions, and their failure is not expected to have a significant adverse impact on financial stability in these two countries or other Member States.
Eligible deposits are protected up to €100,000 in accordance with the Latvian and Luxembourg laws transposing Directive 2014/49/EU. Customers in Latvia can contact ABLV Bank, AS or the Financial and Capital Market Commission, the Latvian supervisory authority, which is the administrator for the Latvian deposit guarantee fund. Customers in Luxembourg can contact ABLV Bank Luxembourg S.A. or the Fonds de Garantie des Dépôts, Luxembourg.
- ECB press release
- Summary of the SRB decision in relation to ABLV Bank, AS
- Summary of the SRB decision in relation to ABLV Bank Luxembourg S.A.
- DIRECTIVE 2014/59/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council
- REGULATION (EU) No 806/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No 1093/2010
- DIRECTIVE 2014/49/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 April 2014 on deposit guarantee schemes
About the Single Resolution Board
The Single Resolution Board (SRB) is the resolution authority within the Banking Union. Together with the National Resolution Authorities (NRAs) it forms the Single Resolution Mechanism. The SRB works closely with, in particular, the NRAs of participating Member States, the European Commission (EC), the European Parliament (EP), the European Central Bank (ECB) and National Competent Authorities (NCAs). The NRAs play a key role within the Banking Union. The mission of the SRB is to ensure an orderly resolution of failing banks with minimum impact on the real economy and the public finances of the participating Member States of the Banking Union.
SRB Contact details:
Camille De Rede
Camille.De-Rede [a] srb.europa.eu
+32 2 490 3530
Maria.HORMAECHE-LAZCANO [a] srb.europa.eu
+32 2 490 3702
National Resolution Authorities Contact details
Ieva Upleja, Phone: +371 67774807, Mobile: +371 29476003, e-mail: leva.upleja [a] fktk.lv
Danièle Berna-Ost, Phone +352 26 251 2230, e-mail: daniele.berna-ost [a] cssf.lu