European Central Bank approves return of full banking licence
Düsseldorf, 17 March 2021. The EAA subsidiary Covered Bond Bank Plc (since 15 March 2021 Erste EAA Ireland Plc) was notified by the European Central Bank on 11 March 2021 that its full banking licence and its licence as a so-called designated credit institution – comparable to a Pfandbrief banking licence – would be revoked effective 12 March 2021 in accordance with its application. “This is an important milestone for the wind-up of the company,” says Christian Doppstadt, the EAA Board member responsible. “This will allow us to close the bank well ahead of the originally planned date of end-2027; and furthermore in a more economically advantageous way than could have been expected in March 2020 after a planned sale could not be implemented due to a change in circumstances. We are thus achieving our goal of keeping the negative financial consequences for the EAA’s wind-up plan as low as possible,” Doppstadt continued.
The remaining portfolio of EAA Covered Bond Bank had already been transferred to the EAA last year in anticipation of the return of the banking licence. The necessary steps to liquidate the company will now be taken in the near future. The liquidation is currently scheduled for 2022.
EAA Covered Bond Bank is comparable to a German Pfandbriefbank and until the licences were returned was one of the last majority holdings in the EAA’s portfolio to conduct operating business. Since 2009/2010, the EAA has been winding down the assets of the former WestLB with a view to minimising losses.