Bancaméricaa small bank with barely 0.13% of the assets of the national financial system, has been intervened by the Superintendency of Banks for the purpose of dissolving it. The measure yesterday generated annoyance and confusion in clients, while the shareholders announced legal measures in opposition.
The Superintendency of Banks reported yesterday that Bancamérica presents accumulated losses from fiscal years prior to 2021 of RD$851 million and losses of RD$147 million during the last fiscal year (as of November). In addition, “the entity made business decisions that affected its prudential indicators, specifically its solvency,” he added.
The governing body reported that Bancamérica it has 28,485 depositors, which represent 0.34% of the system. Only 15,260 have a balance in their savings accounts or instruments, with a total of RD$3,257 million. The number of debtors amounts to 5,438, representing 0.27% of the system.
“My husband alerted me to this bank in December, because he transferred me some money and the bank took eight days to refund it,” said Anny Rodríguez, a client of Bancamérica who went yesterday to the main office, located in the Evaristo Morales expansion.
The action of the Superintendency is not sudden. The previous head of the institution, Luis Armando Asunción, had warned in a letter addressed to the president of the board of directors, Víctor Vargas Irausquín, that if he could not correct the causes that gave rise to a regularization plan in the time granted (October 2020 ), Bancamérica could be dissolved.
Vargas Irausquín is a Venezuelan who directly owns 35% of the bank’s shares and, through the company Cartera de Inversiones Venezolanas, CA, owns the remaining 65%.
He is linked to proceedings abroad for alleged financial irregularities. In August 2021, the Public Ministry of Panama requested his arrest and arrest due to an investigation followed by the alleged commission of an economic or financial crime in that country.
The executive is known in Venezuela as “Chavez’s banker” for his good relationship with Venezuelan Chavismo. In addition, he is president of the BOD Financial Group, which brings together the Western Discount Bank (BOD), Allbank in Panama (intervened, closed and in the process of liquidation), Boi Bank in Antigua and Barbuda, the BONV in Curaçao and Bancamérica.
In Panama and Curaçao, creditors of Allbank and Banco del Orinoco, both under the umbrella of their business group, filed civil lawsuits to recover their funds.
Orlando Mangiagli, businessman and client of Bancamérica, was upset yesterday and wondered how the financial institution came to have to intervene. “My lawyer deposited me five thousand dollars yesterday by mistake, and I’m here now to get my money,” he said.
The Superintendency of Banks took control of Bancamérica to initiate its dissolution, in accordance with the provisions of the Monetary Board in its Second Resolution of January 28, 2022. Diario Libre requested a copy of said resolution, but was told that the document is restricted.
“The measure was due to the fact that the bank failed to comply with legal and regulatory provisions within the framework of a regularization plan,” explained the Superintendence.
With the plan, the authorities tried to get the entity to repatriate deposits held in related entities abroad, increase capital and strengthen its collection methods and internal controls. “The partial repatriation of the required capital was obtained, but without correcting the causes of the plan,” said the governing body.
During the dissolution period, the personnel designated by the Superintendence will exercise the functions and powers of the shareholders, the board of directors, the managers, administrators and general representatives of the entity.
The shareholders of Bancamérica reacted yesterday against the intervention. They consider that it does not do justice to 12 years of work. They announced that they are exercising “all legal resources” to obtain the annulment of the resolution.
However, they guaranteed that they will support the authorities “in achieving an orderly dissolution”, and guaranteed compliance with the regulations and the availability to customers of their deposits and other credits.
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What will happen to customers and their money?
Bancamérica occupies position 31 in relation to the 49 entities of the system. It represents 0.16% of the system’s deposits and 0.15% of the loan portfolio.
According to more information from the Superintendency of Banks98.1% of the entity’s depositors have savings below the threshold of RD$1,860,000.
He specified that public deposits in authorized financial intermediation entities are implicitly guaranteed up to that amount. “In the event that a user’s deposits exceed this amount, the difference will be covered to the extent that the entity’s assets are realized (that is, they are sold),” he explained.
He reported that, at the start of the dissolution process, his credit and debit cards will not be able to be used, or access to online banking, or use ATMs. Nor will interest be generated on deposits.
The term of the dissolution is established for up to 30 days, extendable for another 30 days. As of the closure of the dissolution process, users will be able to access their resources in accordance with the provisions of the law, said the Superintendence.
“The branches will remain open for the exercise of certain activities, such as the collection of loans and credit cards or the offering of information to the public and, as of February 7, 2022, the validation of deposits,” he indicated. Loans and consumption with the cards will continue to generate interest, so customers must keep up to date.
According to a report published Bancamérica on its website, for 2018, the Pacific Credit Rating firm granted it a BBB- rating with a stable outlook.
Bancamérica entered the Dominican market in 1983, when it was established as a financial company under the name of Promotions and Investments. In 2000, it received authorization to operate as Banco de Desarrollo Proinsa, SA In 2004, the authorities approved its conversion and subsequent launch as a savings and credit bank. Thus it was renamed Banco de Ahorro y Crédito de Las Américas, SA (Bancamérica).
