Transformation of RCB Bank
RCB Bank Ltd has taken a decision to transform the Bank into a regulated asset management company, shifting away from banking operations, which will be phased out. Although RCB has been, and remains abundant in liquidity and capital, the on-going and extremely volatile geopolitical situation requires it to transform and adopt a new strategy - phasing out banking operations, while at the same time ensuring that the best interests of its clients are secured. Subsequently, after the bank completes its shift away from accepting deposits and granting loans, it plans to transform into a regulated asset management company, given the substantial assets on its balance sheet.
During this transformation process, RCB Bank will continue to service its existing clients and process all requests for payments or deposit transfers to accounts with other banks, meeting any current obligations.
Starting from today, March 24 2022, RCB Bank, in agreement with the ECB Banking Supervision, will cease from entering into new business with clients with respect to both deposits and/or loans. The Bank will follow a specific timeline and process for winding down existing client relationships. For accurate implementation of this process, as well as for greater confidence of our clients that all obligations to them will be paid in full, RCB Bank agreed with the ECB Banking Supervision that it is appropriate to appoint a special Auditors’ Firm who together with the management of the bank will additionally control the process of the bank completing its settlements with depositors, ensuring the smooth conclusion of the deposit relationships. The Supervisors have decided that a professional team from a reputable audit firm, specifically Deloitte, will have this role. The Board of Directors and the management will of course continue to perform their duties as usual, shall organize the process of the repayment of funds to customers and steer the transformation of the bank.
It must be underlined that in accordance with RCB’s core values of trust, responsibility and excellence, the Bank will proceed with the full repayment of all its obligations towards its clients and continue focused on the management of the remaining assets. As recently announced, RCB has already negotiated the partial sale of its loan assets amounting to 556 million EUR. This action together with the existing high levels of liquidity enables RCB to fully meet its obligations to its clients and retain sufficient liquid assets for further operations after its transformation into an asset management company.
Our clients will be notified and requested to transfer their operations/deposits to other banking institutions in the coming months. In the interim period existing clients will be serviced as usual. We will continue to execute payments and transfers on instructions of our clients and enable their transition to other banks, processing card payments and acquiring services. We will make payments, as usual with same date value, and repay deposits according to their contractual maturity or standard notice period (within 5 business days in case of early termination). Shortly, RCB Bank intends to send notices to its clients for account closures and shall begin at the same time negotiations with customers whose fixed deposits mature after June 2022 regarding the terms of early repayment with payment of the full amount of the deposit and interest for the period during which the amount was held by the Bank.
Upon full repayment of all demands and fixed deposits, RCB is planning to transform into an asset management company, which will continue to manage its substantial loan portfolio and specialize in the provision of other services.
RCB would like to wholeheartedly thank its clients for the long and mutually beneficial cooperation and regrets that due to the new geopolitical situation, it has decided, for Cyprus’ best interests, to take such measures when all its financial indexes were certainly among the best in the country.
