Bankruptcy Proceedings Opened Against Geneva-Based Flowbank

(MENAFN- Swissinfo) The Swiss financial market Supervisory Authority (FINMA) opened bankruptcy proceedings against Geneva-based Flowbank on Thursday. According to FINMA, the bank no longer has the minimum capital required for its business operations.

This content was published on June 14, 2024 - 11:35 2 minutes Keystone-SDA

FINMA also expressed concern in the statement that the bank was over-indebted. The bankruptcy serves to protect depositors.“According to current calculations, the privileged deposits can be repaid in full from the bank's available funds,” the statement continued.

As a first step, a bankruptcy liquidator, the law firm Walder Wyss, will quickly repay client deposits of up to CHF 100,000 to the affected clients. In addition, the clients' securities accounts will be segregated and refunded.

FINMA reportedly determined last week that the Geneva-based bank no longer had sufficient funds for its business activities. Flowbank and its executive bodies were also not in a position to take sustainable measures within the required timeframe in order to comply with the capital adequacy requirements again.

+ Read more: FINMA director expects cooperation and transparency from banks

According to the press release, this is not the first time Flowbank has been targeted by the authorities. FINMA opened its first enforcement proceedings against the bank back in October 2021. Another followed last year.

The investigator appointed in 2023 found that Flowbank had repeatedly failed to comply with capital adequacy requirements and remained poorly organized in various areas. The bank's accounting and financial reporting were found to be incorrect and incomplete. In addition, disclosure and reporting obligations to FINMA had been violated.

Adapted from German by DeepL/kc/ac

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