Rapid developments in RCB: Changing character - Banking stops

RCB Bank is transformed, it is shifted from banking operations, which are gradually being withdrawn. What do these mean and what are the consequences of these decisions, in the announcement issued by RCB Bank, on Thursday morning.

Read it below:

"RCB Bank Ltd has decided to transform the bank into a supervised asset management company and is moving away from banking, which will be phased out. Although the RCB maintains abundant levels of liquidity and capital adequacy, the ongoing and highly volatile geopolitical situation necessitates this transformation and the adoption of a new strategy - the gradual disengagement from banking operations while ensuring safeguards. Then, after the Bank completes its shift from accepting deposits and providing financing, it plans to transform into a supervised asset management company, as it has significant assets in its balance sheet.

During this transformation process, RCB Bank will continue to serve its existing customers and respond to all requests for payment or deposit transfers to accounts with other banks and to fulfill any current obligations.

As of today, March 24, 2022, RCB Bank, in agreement with the ECB Banking Supervision, will cease to enter into new customer relationships for both deposits and loans. The Bank will follow a specific schedule and procedure for the completion of existing customer relationships. In order to accurately implement this procedure, as well as to strengthen our clients' sense of confidence that all liabilities to them will be paid in full, RCB Bank has agreed with the ECB Banking Supervisor that it is appropriate to appoint a specialist audit firm, the who together with the management of the Bank will control the process of completion of the bank's settlements with the depositors, thus ensuring the smooth termination of the deposit relations. The supervisors decided that a team of professionals from a reputable auditing firm, namely Deloitte, would take on this role. The Board of Directors and the Management, of course, will continue to perform their duties normally, will organize the process of repaying deposits to customers and will lead the transformation of the Bank.

It is worth noting that in line with RCB's core values ​​of trust, responsibility and professionalism, the Bank will repay all of its liabilities to its customers and will continue to focus on managing its remaining assets. As recently announced, RCB has already negotiated the partial sale of its € 556 million loan assets. This action combined with the existing high levels of liquidity allows the RCB to fully meet its obligations to its customers and to maintain sufficient liquid assets for further activities after its transformation into an asset management company.

Our customers will be notified and asked to transfer their operations / deposits to other banking institutions in the coming months. In the meantime, existing customers will be served normally. We will continue to make payments and transfers according to our customers' instructions and allow them to transfer to other banks, to process card payments and acquiring services. We will make payments, as usual on the same interest-bearing date, and repay time deposits according to their contractual maturity or the standard notice period (within 5 working days in case of early termination). Soon, RCB intends to send notice to its customers about closing accounts and at the same time will start negotiations with customers whose time deposits expire after June 2022 on the terms of early repayment by paying the full amount of the deposit and interest on the period during which the amount was in the possession of the Bank.

With all repayments and time deposits fully repaid, RCB plans to become an asset management company, which will continue to manage its significant loan portfolio and specialize in providing other services.

RCB would like to wholeheartedly thank its customers for the long-term and mutually beneficial cooperation and regrets that due to the new geopolitical situation, it decided, in the interest of Cyprus, to take such measures when all its financial indicators were definitely among the best. in the country.".