On June 12, 2024, the Swiss Financial Markets Supervisory Authority (FINMA) declared FlowBank AG bankrupt. The bank’s license as a bank and securities dealer was subsequently withdrawn. FINMA appointed Walder Wyss AG, Geneva branch, as the bankruptcy liquidator, with the place of jurisdiction being the bank’s registered office in Geneva.
Following the bankruptcy declaration, FlowBank’s business activities were suspended, and the bank is no longer authorized to conduct banking business or act as a securities dealer. No payments can be made, and securities cannot be bought or sold without the consent of the liquidators. FINMA stated that the bankruptcy was necessary due to FlowBank not having the required minimum capital for operations, with the goal of protecting depositors.
Customers with deposits of up to 100,000 francs are considered privileged deposits and could be paid out in full. Securities deposits would be separated and refunded. Customer deposits such as shares, bonds, funds, and certificates remain the property of the customers and will be returned to them, subject to any offsetting or restrictions. The liquidators are currently working on the transfer modalities and will inform customers as soon as possible.
FlowBank based in Geneva has over 22,000 customer accounts and a balance sheet total of around 680 million francs. The bankruptcy proceedings are aimed at resolving the institution’s over-indebtedness
