Pension management company IPAS Indexo (hereinafter – INDEXO) has submitted the application to the Finance and Capital Market Commission (hereinafter – FCMC) for the permission to perform banking activities.
The application for licence of INDEXO new credit institution includes the sections required in the legislation, namely, the foundation documents of the new bank, the business plan, different new bank policies, such as Client Policy, Credit Policy, Outsourcing Services Policy, Risk Management Policy and a number of other necessary policies, as well as information and documents about the new bank’s shareholders and candidates for executive positions, as well as other necessary documents.
“This is a significant, but just the first step in the process of licencing the new INDEXO Bank. Now we are ready for close cooperation with FCMC and the European Central Bank (ECB) in order to move forward in the licensing process,” said Valdis Siksnis, INDEXO chairman of the management board and one of the founders.
INDEXO currently does not make any forecasts about the time for granting the licence, considering how work-consuming and complicated a licensing process of a new credit institution can be. It is planned that shortly after the licence would be granted, INDEXO bank would start its operations – first, introducing retail banking services, which will be later followed by corporate banking services.
As reported, earlier this year INDEXO successfully completed IPO and raised additional capital EUR 7.49 million. The new share offering was oversubscribed by EUR 2.5 million. In the IPO, investors acquired the pension management company’s shares, and it is planned that the new INDEXO bank will be a subsidiary of the pension management company. INDEXO shares were listed on July 15 on Nasdaq Riga Baltic Main List. The ticker symbol of INDEXO shares in IDX1R.
Bank (credit institution) license is subject to authorization granted by the European Central Bank based on Financial and Capital Market Commission’s (FCMC) proposal.
