Banks|Oma Säästöpankki made a request to the police for an investigation after the bank discovered that its former manager had acted contrary to the bank’s instructions regarding lending.
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The Central Criminal Police has started a new preliminary investigation related to Oma Säästöpankki.
The bank discovered that its former manager had acted contrary to instructions.
The bank had to make a provision of 19.5 million euros in case of credit losses.
S&P Global Ratings changed the bank’s credit rating outlook from stable to negative due to the risk management concern.
Central Criminal Police (krp) has started a new preliminary investigation related to Oma Säästöpankki (Oma SP), says a police representative For Kauppalehti.
My SP announced last week that he had submitted an investigation request to the police. The request was made after the bank discovered in its investigative work that its former director had acted in violation of the bank’s lending guidelines.
The Central Criminal Police will not comment to Kauppalehti on the names of the suspected crimes being investigated, the time of the commission or the number of suspects, citing the initial phase of the investigation.
In April, the bank issued a negative earnings warning, in which it stated that it had observed activity in lending that was contrary to its instructions.
According to the bank’s own investigation, the credit risk status of its customers has been deliberately and erroneously covered up by forming groups of customers in the real estate industry in an operation contrary to the instructions.
My SP had to make a 19.5 million euro provision for credit losses for the first quarter as a result of the incident.
Credits granted against the instructions have totaled around 180 million euros, or around three percent of the bank’s credit portfolio, Oma SP said at the end of April when announcing its first quarter results review.
The bank announced last week that its long-time CEO Pasi Sydänlammi resign immediately.
Chairman of the bank’s board Jaakko Ossa said last week at a press conference that the change of CEO will contribute to the restoration of trust in the bank.
At issue is another preliminary investigation related to Oma Säästöpankki. The Central Criminal Police announced in May that it had started a preliminary investigation into suspected securities market crimes related to the bank.
The first investigation was started based on the investigation request made by the Financial Supervisory Authority. The police have not commented on the crimes being investigated in this preliminary investigation or the number of suspects.
The Financial Supervisory Authority has also said that it is investigating the need to impose administrative sanctions on Oma SP. The bank supervisor said in May that the bank’s financial situation is nevertheless stable and that it has good liquidity and solvency.
Credit scorer Last week, S&P Global Ratings changed the bank’s credit rating outlook from stable to negative due to the risk management concern.
The change means that S&P may downgrade the credit rating in the future if the bank does not take sufficient steps to correct deficiencies in its governance and risk management, or if other material findings emerge from the case.
Oma SP’s share price has fallen by around 33 percent since the beginning of the current year on the Helsinki Stock Exchange.
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