Parex banka's advertisment must contain important information for consumers
The Financial Supervision Authority obliged Parex banka�s branch operating in Estonia, in a clear manner, to warn customers in their advertisements that AS Parex banka involves deposits in a situation where restrictions have been imposed on their activities. The Financial Supervision Authority expects Parex banka to inform customers, with sufficient clarity, that from 1 December 2008 the payments made by Parex banka are subject to the restrictions established by the Financial and Capital Market Commission of Latvia.
With its letter of 22 July 2009, the Financial and Capital Market Commission (Latvian financial supervision) informed the Financial Supervision Authority that Latvian credit institution AS Parex banka is subject to reorganisation measures valid until 30 November 2009, according to the resolutions of the Latvian financial supervision of 1 December 2008 and 19 June 2009.
AS Parex banka operates in Estonia through a branch. According to the law of the European Union, the reorganisation measures applicable by the resolution of the Financial and Capital Market Commission of Latvia are valid with regard to the Estonian branch of Parex banka on the same conditions and to the same extent as in Latvia - the country of origin of the credit institution. For example, in making settlements and withdrawing cash, individuals and companies with up to 10 employees are subject to the restriction of LVL 35 000 (approximately EEK 770 000) per month. For further information on the restrictions, see the website of the Latvian financial supervision:
The primary supervision over branches of banks, insurance companies and investment firms is exercised by a supervision authority of the domicile of the respective bank, insurance company or investment firm.
By volume of assets, the market share of the Estonian branch of AS Parex banka on the Estonian banking market is 0.55% as of 30 June 2009.