The Polish Financial Supervision Authority has launched administrative proceedings against financially troubled Idea Bank SA due to the lender's failure to meet required capital adequacy ratios.
The regulator wants to find out as part of the proceedings whether the introduction of supervisory measures, such as limiting the scope of Idea Bank's activities, would contribute to reducing risks in its operations and support recovery actions already implemented by the lender, Idea said in its Aug. 16 filing.
Idea Bank has been looking for a financial investor willing to boost its capital, and also recently decided to lay off around 50% of its employees to restructure its operating costs, restore profitability and increase capital ratios.
Idea's sister unit Getin Noble Bank SA, which has also been affected by financial problems, recently announced it dropped its search for a financial investor and will focus on preparing a profitability-boosting strategy in order to strengthen its capital position and meet regulatory requirements.
