According to Portuguese media reports, Banif (Banco Internacional do Funchal) has become insolvent and will go out of business.
The Portuguese government, which owns 60% of Banif, has assured full protection of depositors and taxpayers. Depositors, even if they have values above €100,000, will be “safeguarded” government sources reported.
Government sources have also reported that a restructuring plan in place for the failing bank includes integrating its “healthy assets” in government owned Caixa Geral de Depósitos. This decision, however, will require a “European Union authorization”.
Banif Bank, managed by the Banif Financial Group, offers a vast range of services to customers in Portugal, including Madeira and the Azores, and the many Portuguese immigrant communities in the United States, Canada, Bermuda, Venezuela, South Africa, United Kingdom, Spain, and Brazil, which represent a major source of business for the bank.
The Banif Financial Group comprises around 40 companies operating in various financial sectors, including: investment banking, insurance, capital markets, asset management, brokerage services, leasing, and consumer credit.
In 2013, Portugal’s government had injected €1.1 billion of fresh capital into Banif to allow it to meet minimum capital thresholds imposed by the banking regulator.