Panama: AllBank to Keep Intervening

Until November 8, 2019, the operational and administrative control of AllBank, Corp. was extended, an entity that was intervened because its " shareholders did not attend in time and opportunity the requirements of the corrective actions."

Tuesday, October 22, 2019

Through Resolution SBP 0169-2019 the Superintendency ordered the operational and administrative takeover of AllBank, Corp, effective as of 3:00 p.m. on September 9, 2019.

This decision was taken as a result of a series of factors that put at risk the security of the claims entrusted by the Bank's clients. The shareholder group did not attend in time and opportunity to the requirements of the corrective actions that this Superintendence instructed in order to diversify the high degree of exposure of its liquid assets and custody services of its investments in securities placed in related parties, argued the authorities at the time.

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The period in which the bank would be intervened expired on October 9, however, through Resolution SBP-0191-2019, the Superintendency of Banks of Panama decided to extend the measure of administrative and operational control until next November 8.

"... The Superintendency of Banks confirms the stability and solidity of the Panamanian banking system. This measure does not represent a risk of contagion for the rest of the Banking System, given the non-existent connection of interbank relations of AllBank, Corp, with the rest of the system," explains the official statement.

As a result of this intervention, the clients of the entity are organized. Prensa.com reports that "... a group of AllBank depositors in Panama has begun to coordinate in order to take joint actions. Last week a first meeting was held among the depositors, who expressed their disagreement with the regulator's decision to take control of the bank."

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