‘Failing or Likely to Fail’ Assessment of ABLV Bank Luxembourg, SA - 8 February 2019
‘Failing or Likely to Fail’ Assessment of ABLV Bank, AS - 8 February 2019
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Decision followed significant deterioration of bank’s liquidity situation
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Insufficient available funds for stressed outflows
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Single Resolution Board (SRB) assessed that resolution action not in public interest
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Bank and subsidiary in Luxembourg be wound up under law of Latvia and Luxembourg, respectively
On 23 February, the European Central Bank (ECB) determined that ABLV Bank was failing or likely to fail in accordance with the Single Resolution Mechanism Regulation. The ECB also determined ABLV Bank Luxembourg, a subsidiary of the Latvian bank, failing or likely to fail.
Due to the significant deterioration of its liquidity, the bank is likely unable to pay its debts or other liabilities as they fall due. The bank did not have sufficient funds which are immediately available to withstand stressed outflows of
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