RCB Bank Ltd switches from banking to asset management, consequently phasing out its banking operations as of today.
An official statement released by the banks stated “Although RCB has been, and remains abundant in liquidity and capital, the ongoing 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 serve its existing customers and respond to all requests for payment or transfer of deposits to accounts with other banks and to fulfill any current obligations.
No new loans
As of today, March 24, 2022, RCB Bank, in agreement with the ECB Banking Supervision, will not engage in new customer relationships with regard to deposits and loans. The Bank will follow a specific procedure and timeline for the termination of existing customer relationships and a specialized audit firm, namely Deloitte, will regulate the process, ensuring a smooth transition.
In line with RCB's core values of trust, responsibility and professionalism, the Bank will repay all of its liabilities to its customers and will continue to focus on managing its remaining assets. As recently announced, RCB has already negotiated the partial sale of its €556 million loan assets. This action combined with the existing high levels of liquidity allows RCB to fully meet its obligations to its customers and to maintain sufficient liquid assets for further activities after its transformation into an asset management company.
Our customers will be notified and asked to transfer their operations/deposits to other banking institutions in the coming months. In the meantime, existing customers will be served normally. We will continue to make payments and transfers according to our customers' instructions and allow them to transfer to other banks, to process card payments and use needed services.
The statement from the bank concluded, "RCB would like to wholeheartedly thank its customers for the long-term and mutually beneficial cooperation. We decided to take these measures due to the geopolitical situation and in the best interest of Cyprus.