Austrian Financial Market Authority Orders Forced Closure of Euram Bank

PeopleOther ♦ Published: October 16, 2024; 23:36 ♦ (Vindobona)

The Financial Market Authority (FMA) has withdrawn the business license of European American Investment Bank AG (Euram) in Vienna with immediate effect. This follows an extraordinary general meeting at which the bank failed to present a plausible plan for an orderly self-resolution. The bank should have either decided on a capital increase of 25 million euros or presented a credible liquidation strategy.

The Austrian Financial Market Authority (FMA) has revoked the license of Euram Bank AG in Vienna and imposed an official payment freeze. / Picture: © Wikimedia Commons; Startac, CC BY-SA 3.0 Unported DEED (https://creativecommons.org/licenses/by-sa/3.0/deed.en)

The FMA attributed the decision to the bank's inability to structure the resolution “coherently and plausibly”. Euram was originally requested to raise capital to ensure liquidity and stability. After this failed and the self-liquidation plans were deemed inadequate, the FMA intervened.

Chronology and background