Bank of Portugal orders Bison Bank to increase capital by 19 million euros

  • ECO News
  • 2 June 2020

Bank of Portugal sent a letter to the board of Bison Bank, now controlled by the Chinese of Bison Capital Financial, underlining the need for a capital increase of 19 million.

The Chinese shareholders of Bison Bank will have to inject 19 million euros into the investment bank of the former Banif. This increase will have to be made quickly, with the deadline being the end of this month.

It is a determination of the Bank of Portugal that sent, last December, a letter to the executive committee of Bison Bank stating the need to make a capital increase of 19 million by June 30. The letter from the supervisor was immediately redirected by the bank’s management, led by Fang Bian, to the shareholder, Bison Capital Financial, who will now have the responsibility to reinforce the capital in the absence of other investors.

To ECO, the official source of Bison Bank said that “the bank’s shareholder is in permanent contact with the Bank of Portugal so that all the necessary commitments are and will always be fulfilled.”

He also added that the bank “has, as of December 31, 2019, with no relevant change to date, high levels of capital (Tier 1 Common Equity of 85.6%) and liquidity (Liquidity Coverage Ratio of 526.2%)”.

Bison Bank is held by Bison Capital Financial, which is in turn owned by Bison Capital Holding Company Limited, based in Hong Kong.

When it bought the former Banif investment bank, the Chinese group committed itself to the Bank of Portugal to inject 60 million euros into Bison Bank by the end of 2019, as ECO revealed. However, it only placed 41 million euros through a capital increase in July 2018, when it acquired the bank from Oitante. Now it has until June 30 to inject the remaining 19 million euros.

In November, ECO revealed that Bison Bank was looking for new investors, but the information was denied by the bank.