Wallonia opts not to bail out struggling bank

Wallonia opts not to bail out struggling bank
Credit: Belga

The Walloon government has decided not to take part in efforts by the NewB cooperative bank to increase its capital as requested by the regulator, the National Bank, NewB disclosed on Friday.

Hopes of raising the €40 million capital infusion set by the regulator as a condition for maintaining NewB's banking license have thus been definitively dashed.

NewB had communicated on Wednesday that it had not completed the capital increase requested by the regulator by the end-of-September deadline.

The cooperative bank said discussions with the National Bank would continue to focus on the remaining options. These scenarios will then presented to the members of the cooperative, who will decide on the future of the bank, it said in a press release.

"In concrete terms, this means the future of NewB rests in the hands of the cooperative's 116,000 members, 353 organisations and institutional investors," the bank explained, adding that an invitation for an extraordinary general meeting would soon be issued.

Copyright © 2024 The Brussels Times. All Rights Reserved.