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These Questions and Answers should be rea
d in conjunction with the
MFSA
public notice
concerning Nemea Bank plc
.
Deposits
1.
Can I deposit fu
nds in my Nemea
b
ank
account
?
No. Depositors are being instructed not to place additional deposits in their accounts.
2.
Why are we prevented from depositing
further funds with the bank?
M
easures are being taken with specific
reference to the Bank trinc an on
-
site inspection at
the Bank carried out jointly with members of the DGMSIII of the European Central Bank (‘ECB’)
and which was finalised in April 2016. As a result of this joint inspection a number of serious
regulator
y shortcomings
were identified.
In view of this, depositors are
being
instructed n
ot to
place additional deposits
until further notice
.
3.
How will future payments in my account be handled
?
You
will be advised by Nemea Bank that the payment is being held in
suspense
.
You
will be
instructed to provide details of an alternative account with another bank to which
any future
payments
will be transferred
at no extra cost
.
4.
W
hat will happen to credit transfers which have already been initiated
?
All credit transfers
whether outgoing or incoming
reaching the bank by
26 April 2016
14
00hrs
CET
will be affected. Restrictions as indicated in the
MFSA
press
release
will become effective as
of
26
April 2016
14
00hrs onwards trinc which time transfers reaching the bank will be held
in suspense.
You
will be instructed to provide details of an alternative account with another
bank to which the funds will be transferred at no extra cost.
5.
What w
i
ll happe
n if a third party attempts to
credit my account?
If the credit transfer instructions
reach
ed
the bank
after
26 April 2016
14
00hrs CET
,
you
will be
advised by Nemea Bank that
the
payment is
being held
in suspense and will be instructed to
provide details o
f
an alternative account
with another bank
to which the funds will be
transferred
at no extra cost
.
6.
Will interest receivable continue to accrue?
If yes, where will such interest be deposited?
Yes. All interest due and any other terms and conditions relating to your account will remain
unchanged.
The interest can be transferred to an alternative account at
your
request.
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7.
Will my foreign currency denominated accounts be affected? Can I deposit
in
/withdraw
from these
accounts?
Foreign currency denominated accounts will be handled in the same manner as euro
denominated accounts.
8.
Will
‘client accounts’ held at Nemea Bank
by
any financial services licence holders
be
a
ffected by these restrictions?
Restrictions imposed by
the Authority
apply also to ‘client accounts’.
Withdrawals
9.
Can I withdraw funds from my account
(s)
?
Withdrawals are being limited to
EUR
250
per
depositor
per day
.
10.
Can I make any payment transfers from my account
(s)
?
Yes, up to a maximum
of €
250
per
depositor
per day.
11.
Will direct debits/standing orders continue to operate?
If yes, h
ow?
Yes
,
subject to
the
restrictions
on withdrawals
being
imposed by the Authority
.
12.
Can I break my
t
erm
d
eposit account?
No, the original terms of the term deposit will apply.
13.
Can I withdraw funds
trinc maturity of
a
t
erm
d
eposit
a
ccount?
No, funds cannot be withdrawn even in such cases. Funds will be however placed in a savings
account with the bank.
Depositor Compen
sation Scheme
14.
What will happen to my deposit if Nemea Bank is unable to repay my deposit?
In the event that the MFSA and
ECB determine that
the
operation
s
of the bank
are
no longer
viable, the Depositor Compensation Scheme in Malta will
cover deposits
up t
o a maximum of
€100K per depositor. Further details
can
be obtained
via phone number +356 2144 1155 or email
info@compensationschemes.org.mt
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General questions
15.
What actions is the
Authority
taking
to address the situation?
The Authority has assigned a
‘
competent person
’
appointed
in terms of Article 29 of the Banking
Act (Cap371) and Article 15A of the Investments Services Act (Cap 370)
to
take charge of the assets
of
the b
ank
and to assume control
of the Bank’s business
to safeguard the interest of depositors
and
investment services clients.
The Authority will consider taking any further actions as considered necessary.
16.
Are such restrictions being imposed on an indefinite basis?
The Authority wil
l communicate as soon as the
restrictions
can be lifted.
17.
What will the implications on the Maltese economic and financial stability be?
Nemea Bank is a small bank
that has only recently
commenced its deposit
-
taking operations
,
starting
in October 2014.
In view of this, the restrictions on the bank are not expected to
affect
the
resilience of the
Maltese banking sector
which is
highly capitalised and
adequately
resourced.
18.
Why did the
Authority
appoint a competent person in terms of Article 29(1)(c) and (d
) of the
Banking Act (Chapter 371 of the Laws of Malta)?
Under the provisions of the Banking Act, the Authority has wide
-
ranging powers to intervene in
the operations of a bank
to ensure that the interest of depositors and investors are safeguarded.
19.
Is the
Authority
considering taking such measures in relation to other banks?
No. The measures are being contemplated specifically in relation to Nemea Bank.
