The boards of directors of Dexia and Dexia Crédit Local approved on Monday the filing on Tuesday of an application to relinquish Dexia Crédit Local’s credit institution licence and investment services authorisations, the Belgian-French bank announced. The aim is to continue “as a non-bank from the beginning of 2024.”
Dexia had collapsed during the 2008 financial crisis. The Belgian banking division was separated from the group in 2011 and renamed Belfius. Since then, residual bank Dexia has been gradually winding down its activities (loans and bonds) in an orderly manner.
In the meantime, Dexia has reduced its balance sheet by 82% and its portfolio of commercial assets by 86%.
“Dexia’s decision to request a withdrawal of the banking and investment services authorisations of Dexia Crédit Local and the financing company authorisations of Dexia Flobail and Dexia CLF Régions Bail is based on a detailed analysis of the impacts and risks, showing that Dexia is perfectly able to continue its orderly resolution outside this regulatory framework,” it said in a statement.
In practical terms, if the application is approved by the Prudential Supervision and Resolution Authority, Dexia will cease to be a financial company under Belgian law.
