Luxembourg's financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), has confirmed that the European Central Bank (ECB) decided to withdraw the banking licence of Banque Havilland SA on Thursday 1 August 2024.
The decision takes effect on Friday 2 August 2024, following its notification to Banque Havilland on Thursday.
The CSSF recalled that Banque Havilland SA is a direct and wholly owned subsidiary of Havilland Group SA and has two subsidies: Banque Havilland (Monaco) SAM and Banque Havilland (Liechtenstein) AG, which also has a branch in Zurich.
In light of the ECB decision, the CSSF confirmed that it has lodged an application with the Luxembourg District Court for the suspension of payments for Banque Havilland. The CSSF is now acting as administrator until the first-instance judgment on the application for the suspension of payments is delivered.
The CSSF noted that the Luxembourg-based bank has the right to appeal the decision, which the latter has said it will do. In a press release on Friday, Banque Havilland reported: "The bank has decided to challenge the ECB decision but will not oppose the application of the regime of suspension of payments which is intended to protect the interest of all parties involved and ensure a structured process moving forward".
The bank added that it now "aims to wind down its activities in an orderly manner and in close cooperation with the CSSF" and that its main focus at present is "on minimising the effects of the disruption to our services and to ensure the repayment of all depositors".
Whilst no reason was given in the press releases, the ECB decision had been expected for several days. On Tuesday 30 July 2024, Banque Havilland had confirmed that it would cease its activities in Liechtenstein and Switzerland and liquidate Banque Havilland (Liechtenstein).
Following this, the ALEBA trade union expressed its concerns over the fates of the bank's 132 employees in Luxembourg.
