24.10.2022
RCB Bank announced on Monday that it will be relinquishing its banking license, a formality that completes the lender’s transformation into an asset management company. The decision was made by the board of directors of the bank.
The released statement said that the decision to withdraw from the banking business follows from the fact that RCB currently has no deposits.
The Board of Directors thanked its clients for their trust over the past 27 years and stated that with the new powers and brand name, the company will continue to operate in Cyprus and Europe, “promoting growth and prosperity”.
In 2020, the bank’s profit amounted to 11.5 million euros, compared to 32 million euros a year earlier. In March of this year, RCB announced its intention to wind down its banking operations and transform into an asset management company. There were warnings for the bank as there was an outflow of deposits following Russia’s invasion of Ukraine.
Much of RCB’s business depended on the Russian market, and the escalation of the war and the expansion of sanctions increased uncertainty about its future. A larger outflow of deposits would lead to the Single Settlement Mechanism, which would put depositors’ money at risk.
Also in March, the bank announced the sale of a EUR 565 million operating loan portfolio to Hellenic Bank , providing liquidity to cover all of its liabilities to depositors.
