12 December 2014
As we mentioned in a post on this website on 20 November, Liquidity Renewed, an interesting anomaly has arisen whereby a fine is levied on FBME Bank for deposits required by the Central Bank of Cyprus to pay depositors because of the actions of the Central Bank itself. In other words, the Central Bank forces FBME to do something, then levies a penalty on the Bank for having done it! Continue reading
4 December 2014
The collapse of the Cyprus banking system in 2012-13 was one of the most serious economic tsunamis faced by any country in the modern age. The principal fault lay with the three large local systemic banks, of course, but the supervisory authorities have not escaped censure.*
3 December 2014
The FBME Limited shareholders have retained a highly experienced legal counsel at the arbitral tribunal of the International Chamber of Commerce (ICC) in Paris, it has been announced today.
3 December 2014
FBME Bank submitted to FinCEN on 1 December 2014 a comprehensive forensic accounting report made by experts from the international consulting firm E&Y (Ernst & Young). In addition, the Bank has submitted to FinCEN hundreds of pages of documents regarding its anti-money laundering compliance programme and know-your-customer procedures. Submission to FinCEN was made on FBME Bank’s behalf by the international law firm Hogan Lovells.
2 December 2014
The judge at the District Court reserved judgment in the supplementary affidavit of the shareholders of FBME on 1 December, after hearing written and verbal submissions regarding the filing for arbitration at the International Chamber of Commerce in Paris. As is standard practice, she reserved judgment to a later date on this and on the interim application by the shareholders to stop the sale of FBME’s Cyprus assets and prevent measures by the Central Bank’s Administrator to further destroy the Bank’s business.
28 November 2014
Arbitration papers in the case filed at the International Chamber of Commerce (ICC) by the owners of FBME Limited, the holding company of FBME Bank, reveal that the damages claim against the Republic of Cyprus is currently estimated at half a billion US dollars … “but well may exceed this sum by the time the arbitration is completed”. The ICC is empowered to decide on the final damages claim. A copy of the summary of the arbitration papers is available here.
21 November 2014
Four months of mismanagement have really shown up the incompetence of the Central Bank of Cyprus’s attempts at banking. Whatever is felt about its skill at operating as a banking supervisor, it is evident that it can’t successfully run a bank. What else can you expect when auditors, accountants, economists and entrepreneurs – not a professional banker among them – are in charge?
20 November 2014
Further to our story this morning, it is good to report that significant sums from FBME Bank accounts have arrived at the Central Bank of Cyprus. So, for now, there is no liquidity issue and transactions should be renewed. It is good to bring welcome news to our customers, staff, correspondents, associates and friends.
20 November 2014
Working in close cooperation with the Bank of Tanzania and FBME Bank’s Statutory Manager in Dar Es Salaam, FBME Limited is putting in place measures to create additional liquidity in the Cyprus branch of FBME Bank. This is being done to ensure depositors can escape the tyranny of the maximum daily transaction levels imposed by the Administrator appointed by the Central Bank of Cyprus.
14 November 2014
It is now nearly four months since FBME’s Cyprus branch was expropriated under Resolution by the Central Bank of Cyprus. It is worthwhile reminding ourselves of what we mean by the health of the Bank and its conservative financial management.
