ABLV establishes subsidiary bank in Luxembourg

July 14, 2011, 14:51 / Banking

ABLV Bank, AS has established ABLV Luxembourg, S.A., which is going to apply for a banking licence.

Upon receiving a licence, ABLV subsidiary bank in Luxembourg will offer private banking and investment services to its customers, including individual investment management and advisory services, brokerage and other bank services.

ABLV subsidiary bank in Luxembourg is supposed to start its operations next year. Before that, necessary permits and licences will be obtained, alongside equipping office, ensuring necessary IT infrastructure and training employees.

During the last year, we have been thoroughly choosing the jurisdiction for establishing our subsidiary bank. Luxembourg was chosen since it is a member of the EU, is one of the world’s leading countries in terms of security, has very good reputation, ensures high standards of living and has legal environment well-suited for provision of financial services. Luxembourg is one of the world’s most important financial centres – there are more than 150 banks operating in the state, including branches or subsidiaries of the largest European banks – HSBC, Credit Suiss, Commerzbank, Citibank, BNP Paribas, and others. Luxembourg is ranked first in Europe and second in the world (after the US) as an investment funds centre – there are 3500 investment funds operating in the country.

ABLV Bank Chairman of the Board Ernest Bernis said: “Establishment of a subsidiary bank in Luxembourg will enable us to offer valuable private banking experience to a wide range of prospective customers. At the same time, our existing customers will get access to new products and services developed based on a special understanding of their needs. We are also sure that success of our subsidiary bank will considerably boost development of our banking business in Latvia.”

Initial paid-in share capital of ABLV Luxembourg, S.A. equals EUR 2 000 000, and overall amount of EUR 20 million is planned to be invested within a year. The bank’s operations will be regulated by the Luxembourg law and requirements of CSSF – an institution supervising banking operations in Luxembourg. It should be noted that currently there are no banks operating in Luxembourg that are of a Baltic origin.

Additional information:
Ilmars Jargans
+ 371 6777 5296