Eik Banki at a glance
On 30 September 2010 Finansiel Stabilitet signed a conditional agreement with Eik Banki P/F. The agreement implies the following among other things:
• Effective 30 September 2010 Eik Banki transfers all assets and liabilities, except for share capital and subordinated debt, to a Faroese subsidiary owned by Finansiel Stabilitet
• The purchase price is set at DKK 0 and is subject to adjustment if the winding up of the group’s activities yields a return to Finansiel Stabilitet in excess of the standard market return.
Customers are covered by the individual government guarantee
Eik Banki is a member of the Private Contingency Association and is thus covered by the individual government guarantee. Deposits and other unsecured claims are thus covered in full in accordance with the Act on Financial Stability until the bank’s activities are transferred to a subsidiary owned by Finansiel Stabilitet.
When the transfer has been completed, the customers are covered in the same manner as any other depositor in a Faroese bank with the further reassurance that the bank is owned by Finansiel Stabilitet.