GE Money Bank Receives 30 Million Lats Equity Capital
OREANDA-NEWS. On 19 March 2009 was announced, that GE Money Bank had received 30 million LVL to the equity capital from its parent company General Electric, which thus assures its long-term investor’s goals in Latvia.
As previously informed, on 20 January the GE Money Bank shareholders meeting resolved to increase the equity capital of GE Money Bank by 30,000,000 LVL. In March this year GE Money Bank received this funding.
Attracting this capital, GE Money both recompenses the previous year losses, has attained high capitalization and ready for future challenges. Upon the equity capital increase GE Money Bank liquidity exceeds the standard defined by the Finance and Capital Market Commission almost by 20% and in 2009 the capital adequacy of GE Money Bank will be better than sector’s average, which is more than 20%.
Financial services comprise just a small part of the total General Electric business; it is one of world’s largest and diversified corporations operating in 160 countries. A long-term GE credit line is also available to the bank, the volume of which is equal to the volume of the deposit base.
GE Money Bank is also proceeding with realization of a conservative approach to customer solvency risk assessment and active reserves creation. In 2008 GE Money Bank turned nine million lats to reserves, so the total annual reserves volume was 12 million LVL, which is more than 5% against the credit portfolio and above the average in the sector.
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