FBME RELEASED STATEMENT
A speculative report has appeared in Cyprus regarding FBME Bank Limited’s (FBME) position with reference to capital controls imposed in Cyprus, which FBME has noted with some marked concern. The report quotes from a confidential correspondence from FBME to the Governor of the Central Bank of Cyprus and its Board of Directors, and makes reference to observations from Central Bank of Cyprus “sources who wished to remain anonymous”. As such, it is impossible for FBME to deal substantively with the speculation, except to make its own position clear.
The report correctly identifies FBME as having operated in a transparent manner. In fact, FBME has attempted to co-operate openly and constructively with the relevant authorities in the Republic of Cyprus at all times, including in the period since capital control restrictions were announced in March 2013. However, as the report indicates, it is also true that FBME has initiated legal proceedings in respect of the restrictions and FBME’s position on this issue is a matter of public record.
FBME has successfully operated in Cyprus for the last 32 years and the Cyprus branch conducts over 90% of FBME’s global banking business holding over 90% of FBME’s assets and the restrictions, as announced, would have had a material and adverse effect on FBME, its international deposit base and its international customers.
FBME shares the overall aims of the authorities within the Republic of Cyprus of achieving financial stability and the resumption of normal business in Cyprus for the short term and the long term benefit of the country. Accordingly, FBME has acted at all times in a manner contributing consistently to both financial stability and the prudent and responsible management of its international customers’ interests, while engaging in a transparent communication with the Central Bank of Cyprus and the other relevant authorities in the Republic of Cyprus.
The success of FBME’s responsible approach is evidenced by the fact that, despite this unprecedented financial crisis, FBME has retained a sound and stable balance sheet and as such has maintained the confidence of its international depositors in both FBME and in Cyprus. As a result, FBME continues to be highly liquid and has maintained deposits at levels that are largely unchanged throughout the financial and economic instability of Cyprus this year. FBME continues to comply with European Capital Adequacy and Liquidity Standards and other healthy balance sheet ratios.
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