Banco Federal
Encyclopedia
Banco Federal is a Venezuela
n bank
based in Caracas
. At the end of April 2010 it was the country's 11th-largest bank, with deposits of 7.66 billion bolivars, or 2.82 percent of total deposits in the banking system. In June 2010 the bank was taken over by Venezuela's banking regulator, after it had failed to meet minimum reserve requirements and investment quotas. It had been told to expand its capital base by 1.5bn bolivars (around $350m), and had only raised B100m. At least 12 other banks had been taken over since November 2009 after speculation about bank insolvency
.
On 14 June 2010 Victor Vargas, head of Venezuela's National Banking Council, indicated that he supported the takeover. "Vargas said he's sorry the takeover of Banco Federal had to occur, but indicated he supported the government action by saying that sometimes interventions are necessary to keep the overall banking system running smoothly." Banco Federal is to be liquidated by the government.
Banco Federal's President Nelson Mezerhane owned a 25.8% stake in TV station Globovisión
. After the state intervention Mezerhane violated a travel prohibition and left the country, and the government took over the Globovisión stake. In August 2010 President Hugo Chavez
accused Mezerhane of having illegally transferred Banco Federal funds to a construction company owned by Mezerhane.
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
n bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
based in Caracas
Caracas
Caracas , officially Santiago de León de Caracas, is the capital and largest city of Venezuela; natives or residents are known as Caraquenians in English . It is located in the northern part of the country, following the contours of the narrow Caracas Valley on the Venezuelan coastal mountain range...
. At the end of April 2010 it was the country's 11th-largest bank, with deposits of 7.66 billion bolivars, or 2.82 percent of total deposits in the banking system. In June 2010 the bank was taken over by Venezuela's banking regulator, after it had failed to meet minimum reserve requirements and investment quotas. It had been told to expand its capital base by 1.5bn bolivars (around $350m), and had only raised B100m. At least 12 other banks had been taken over since November 2009 after speculation about bank insolvency
Venezuelan banking crisis of 2009-2010
The 2009-2010 banking crisis occurred in Venezuela when a number of the banks of Venezuela were taken over by the government, after "the revelation that several banks owned by [Hugo Chavez] supporters were in financial trouble after engaging in questionable business practices...
.
On 14 June 2010 Victor Vargas, head of Venezuela's National Banking Council, indicated that he supported the takeover. "Vargas said he's sorry the takeover of Banco Federal had to occur, but indicated he supported the government action by saying that sometimes interventions are necessary to keep the overall banking system running smoothly." Banco Federal is to be liquidated by the government.
Banco Federal's President Nelson Mezerhane owned a 25.8% stake in TV station Globovisión
Globovisión
Globovisión is a 24-hour television news network in Venezuela. It broadcasts over-the-air in Caracas, Aragua, Carabobo and Zulia on UHF channel 33. Globovisión is seen in the rest of Venezuela on cable or satellite and worldwide from their website...
. After the state intervention Mezerhane violated a travel prohibition and left the country, and the government took over the Globovisión stake. In August 2010 President Hugo Chavez
Hugo Chávez
Hugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...
accused Mezerhane of having illegally transferred Banco Federal funds to a construction company owned by Mezerhane.