No continuation

FMA closes Wiener Bank with immediate effect

The plans for a self-settlement were not conclusive for the FMA, so the protection case has occurred.(Bild: APA/HELMUT FOHRINGER)

The Financial Market Authority (FMA) has prohibited the European American Investment Bank (Euram) from continuing its business operations with immediate effect. The bank is therefore a case for the deposit guarantee scheme, as the authority announced in a press release on Wednesday - which covers EUR 37.6 million in this specific case.

It justified the step with inadequate plans for self-liquidation, which the bank had presented after an extraordinary general meeting on Tuesday.

Immediate payment stop
The FMA had presented the owners of the bank with two alternatives: To carry out a capital increase of 25 million euros or to decide on an orderly self-liquidation. However, this has now come to nothing, as a successful resolution has not been presented "conclusively and plausibly", writes the FMA.

The forced closure has resulted in a payment freeze for covered deposits: deposits, withdrawals and transfers are no longer possible.

Deposit protection protects investors
Deposit protection protects investors against losses, for example in the event of bankruptcy. The system provides that deposits are protected up to a maximum amount of 100,000 per person and credit institution, in certain cases up to 500,000 euros. If a protection case occurs, compensation must be paid out within a maximum of seven days.

According to initial information, 37.6 million euros are covered by the deposit guarantee. This is the fifth guarantee case since the system was reorganized in 2019.