Saving protect depositors and bank creditors who hold senior debt. This procedure will ensure that the operations of Banif, which will be transferred to Santander Totta, which is the Portuguese subsidiary of the Spanish group will continue “to function properly,” the Banco de Portugal. On Monday Santander announced the acquisition of the portfolio will have a “negligible impact” on the capital base of the group and will have a minor positive impact on earnings in the first year after the deal, reported Reuters.
Shareholders and holders of subordinated debt, in turn, will remain in Banif, while preserving the “very limited group of assets’, which will go through the process of liquidation. “Troubled assets” will be transferred to a special company for asset management, complemented by the Central Bank.
The process of saving the Banif somewhat coincides with the act in 2014 rescue of BES, which was also divided into “good” and “bad” bank after its profitability suffered due to its large exposure to debt-ridden business empire of the family Eshpiritu Santo recalls Financial Times.
Banif is the seventh largest bank in Portugal, as of June 2014 total assets amounted to 12.8 bn. Euros, which is equivalent to about 7% of GDP. Attracted by the financial institution deposits worth 6.3 bn. Euros. The bank is the leading lender to the Portuguese islands of Madeira and the Azores, which holds over 30% of total deposits.