"Based on the decision taken by the European Central Bank (ECB) on the withdrawal of the licence of Baltic International Bank SE, Latvijas Banka has prepared an application on the opening of the liquidation proceedings of Baltic International Bank SE for the court," LB said, adding that the application was submitted on Wednesday, March 15.
As previously reported, on December 12, 2022, Latvia's banking regulator the Financial and Capital Market Commission (FKTK) recognised Baltic International Bank SE as failing or likely to fail, and suspended its operations.
At the start of the year, FKTK was absorbed into the structure of Latvijas Banka, which accounts for the potentially confusing appearance of two institutions – FKTK and the central bank – handling the case of BIB.
On 10 March 2023, the ECB took a decision to withdraw the licence of Baltic International Bank SE. The decision took effect on 11 March. In turn, pursuant to Section 129, Paragraph one of the Credit Institution Law, in such a situation Latvijas Banka has grounds to submit to the court an application for the liquidation of a credit institution and the appointment of a liquidator.
Olavs Cers will become the liquidator of Baltic International Bank SE if he is approved as such by the court, LB said.