Following the European Central Bank’s assessment of AS PNB Banka as failing or likely to fail, the Single Resolution Board has today decided that resolution action is not necessary. The Latvian bank will be wound up under national law.
The SRB assessed the situation and concurred with the ECB’s assessment of the bank. It concluded that there are no available supervisory or private sector measures that could prevent its failure.
The Board carried out a public interest assessment and found that resolution action was not necessary. In particular, PNB Banka does not provide critical functions to the economy and its failure is not expected to have an adverse impact on financial stability in Latvia or other EU Member States.
The National Resolution Authority in Latvia, the Financial and Capital Market Commission, will implement the decision in accordance with national law.
Eligible deposits up to €100,000 are safeguarded in accordance with the Latvian law transposing Directive 2014/49/EU. Depositors in Latvia can contact the Financial and Capital Market Commission, which is the administrator of the Latvian deposit guarantee fund, for more information.