Business

Greek lender Proton saved by bank rescue fund

A Proton Bank retail branch in Athens
Image caption Proton Bank's board was removed in August after a hole was found in its accounts

Greece's Proton Bank has become the country's first lender to be saved by a rescue fund activated by its central bank.

The lender is being split in two after allegations some of its former managers violated money laundering laws.

A "good bank" called New Proton Bank will take on the firm's deposit accounts and safe assets.

The rest of the business is being put into liquidation. The proceeds will be used to pay off third party claims.

Shares in Proton have been frozen on the Athens Stock Exchange. The rescue is being paid for by the Hellenic Financial Stability Fund.

The 10bn euro ($13.5bn, £8.7bn) scheme was set up by the eurozone and the International Monetary Fund (IMF) as part of their bail-out of Greece.

The rescue scheme will become the saved part of the bank's sole shareholder.

Proton is one of Greece's smallest banks. It operates 31 retail branches and reported total assets of 3.8bn euros at the end of March.

The Greek central bank replaced its board of directors in August after discovering 51m euros of loans had been issued without the proper procedures.

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