Finance watchdog okays PrivatBank's asset transfer to Industra Bank

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The Board of Finance and Capital Market Commission (FKTK) has allowed AS 'PrivatBank' to transfer most of its assets to AS 'Industra Bank' according to a transitional agreement entered into by both parties, the FKTK said on August 10.

As a result of the transaction, Industra Bank will take over customer relations from PrivatBank, including the management of accounts of private individuals and legal entities, credit and leasing portfolios, deposits, as well as securities owned by the bank

The FKTK said that the clients of both banks retain all their current obligations and rights arising from the contracts.

In a statement to the media, FKTK Chair Santa Purgaile said that 2021 and 2022 experienced an active transformation process for the Latvian banking sector, which was explained by the change in the business model launched in 2018 for those banks that had previously focused on foreign customer service. One of the directions for the banking development of this segment is consolidation while maintaining areas of activity that are competitive under existing conditions.

“We are pleased that PrivatBank and Industra Bank implement a transaction that strengthens the Latvian banking sector,” Purgaile pointed out.

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