FCMC permits Swedbank to take over Danske Bank’s retail banking business
Having assessed the credit institution undertaking transition proposal submitted by Danske Bank AS Latvian branch and the accompanying documents, the FCMC has concluded that the transition of undertaking will not affect protection of the interests of depositors, borrowers and other customers, which means that the all rights and obligations existing under contracts with Danske Bank AS Latvian branch will remain in force.
No action is required on the part of Danske Bank customers. After receiving an approval from other supervisory institutions in Latvia and Lithuania, Danske Bank will send customers detailed information about the transition process and how it will affect the services they use.
As already reported in September, Danske Bank has entered into agreement with Swedbank Lithuania and Swedbank Latvia for transferring its retail business to Swedbank. The deal encompasses bank accounts, loans, deposits, payment cards and securities of retail customers (except private banking clients). Documents have been filed with banking supervision authorities in the both countries seeking permission to proceed with the transaction.
After receiving approval by the supervisory authorities, the migration of the services will be carried out in the 1st quarter of 2016. It will affect approximately 7000 Danske Bank retail customers in Latvia and 120 000 in Lithuania. The aggregate of customer loans to be migrated as part of the deal amounts to 116 million euros in Latvia and 525 million euros in Lithuania.
At the start of the year, Danske Bank announced its intention to focus its operations in the three Baltic states on serving corporate customers and individuals affiliated with such customers, at the same time gradually exiting the retail banking mass segment.
About Danske Bank
Danske Bank is the largest bank in Denmark and one of the leading financial institutions in Europe. Danske Bank Latvia focuses on serving business customers and individuals affiliated with such customers.
Conducting its business in a responsible and sustainable manner, Danske Bank Latvia has received an acknowledgement that its practices fall within the silver category of the Sustainability Index.
Swedbank Group is the leading finance organization in Sweden, Latvia, Estonia and Lithuania. Swedbank provides individuals and companies with a full range of financial services, from day-to-day transactions to most complex consultations. In Latvia, Swedbank has 47 branches and 402 cash machines, as well as popular solutions for banking via phone, Internet and mobile app.