Regarding the compensation of deposits held at FBME Bank Ltd – Cyprus branch
The management committee of the Deposit Guarantee and Resolution of Credit and Other Institution Scheme (DGS) announces that the published text dated 24 May 2016 on the website of the mother company of FBME Bank Ltd. titled ‘CBC’s Request for Personal Details Defies the Law’, does not constitute true facts. All decisions of the management committee are taken in accordance with the relevant legislation.
More specifically, the management committee of the DGS clarifies the following:
- Statements of particulars by depositors of FBME Bank Ltd – Cyprus branch to the management committee of the DGS are necessary in order to provide details of the account which depositors wish their compensation to be tansferred to.
- All rights, title and interest assigned to the DGS by the beneficiary depositor are up to the payout amount paid by the DGS to the depositor as compensation. This assignment originates from the European Directive 2014/49/EU as transposed into national legislation and results in the substitution of the rights of the depositor for this payout amount in case of liquidation of FBME.
- Covered deposits up to 100.000 Euro are guaranteed by the DGS and are paid by the DGS in accordance with the national legislation in place and, more specifically, the Deposit Guarantee and Resolution of Credit and Other Institutions Law of 2016 and the Regulations issued thereunder.
- In case of covered deposits exceeding 100.000 Euro, the depositor maintains the lawful right to demand any amount in excess of 100.000 Euro in accordance with the procedure and the ranking provided for in national legislation.
- The data provided in the said publication referring to the number of depositors who have submitted statements of particulars together with relevant documentation to the central bank of Cyprus are not correct.
- The DGS is a seperate legal entity which has been established via specific legislation. Any decisions pertaining to the management of the Deposit Guarantee Fund for Banks are taken by the Management Committee of the DGS. The funds which are utilised by the DGS for the compensation of depositors of FBME Bank Ltd. – Cyprus branch are in the Deposit Guarantee Fund for Banks and consist mainly of ex ante contributions of banking institutions which are members of the DGS, according to the provisions of the law.