Bancamerica Has been Shut Down

Just now in Diario Libre:

Superintendence of Banks intervenes Bancamérica for its dissolution

The dissolution of Bancamérica was arranged by the Monetary Board through its Second Resolution of January 28, 2022

https://www.diariolibre.com/economia/fi … ca/1618338

The Superintendence of Banks announced this Wednesday that it took control of Bancamérica to begin its dissolution, in accordance with the provisions of the Monetary Board in its Second Resolution of January 28, 2022.

According to a statement issued in the form of a frequently asked question, This is an orderly exit process from the system established in the Monetary and Financial Law, which means that, during the dissolution period, the personnel designated by the Superintendency of Banks will exercise the functions and powers of the shareholders, the board of directors, the managers, administrators and general representatives of the entity.

According to the superintendency "the dissolution of Bancamérica was ordered by the Monetary Board through its Second Resolution of January 28, 2022. The measure was due to the fact that the bank failed to comply with legal and regulatory provisions within the framework of a regularization plan" .

Reason why the Superintendency of Banks took control of the entity to dissolve it. Initially, during this process, it will verify the assets ( loans , investments, real estate, among others) and liabilities ( deposits and other obligations with third parties) to transfer them to another financial intermediary entity through a transparent and competitive bidding process, within the next 30 days".

At the time of initiating the dissolution process, the entity's operations are suspended. The branches will remain open for the exercise of certain activities, such as the collection of loans and credit cards or the offering of information to the public and, as of February 7, 2022, the validation of deposits .

Validation is the process by which the ownership of deposits is verified . For this process to flow, it is important that users present the corresponding evidence, such as original deposit certificates, savings books, debit cards, identity cards, among other documents.

Public deposits in authorized financial intermediation entities are implicitly guaranteed up to an amount of RD$1,860,000 (one million eight hundred and sixty thousand) per depositor. 98.1% of the entity's depositors have savings below this threshold.

In the event that a user's deposits exceed this amount, the difference will be covered to the extent that the entity's assets are realized (that is, they are sold). The Superintendence of Banks ensures the preservation of the value of assets so that depositors experience the least possible impact.

Brings up interesting aspect - DR banks only guarantee up to appx 32k usd. Even though only effected less than 2%. Is that per bank per person guarantee?

This is going to be ugly

That is per depositor.  So multiple accounts in one name total guarantee is 1,860,000 apparently.

OUCH