Latvian Regulator Files Insolvency Suit Against PNB Banka

Latvian banking regulator has filed an insolvency suit against the troubled local lender PNB Banka. The move comes just a week after the bank’s operations were suspended after the European Central bank (ECB) determined that PNB Banka is likely to fail, RBI reported. The Financial and Capital Market Commission (FCMC) of Latvia has submitted an application to the City of Riga Vidzeme District. It also requested the appointment of Vigo Krastiņš as the insolvency administrator. Last week, FCMC suspended the operations of PNB Banka following repeated failures by the bank to comply with the stipulated regulatory requirements. PNB Banka also received an opportunity to strengthen its capital, but it failed to achieve the target within the deadline. Read more