Frankfurt-based Eurocity AG (previously Eurocity Bank AG), a financial institution under Turkish-Austrian control, has apparently lost its banking license. A European Central Bank (ECB) spokesman said the institute’s license had already been withdrawn in December 2022. This means that the bank can no longer conduct banking business in Germany. On 15 March 2023, the Eurocity website is still accessible. There is no official statement from Eurocity.
The granting of a banking license is generally the responsibility of the national authorities, which in Germany is the Federal Financial Supervisory Authority (BaFin). In turn, the European Central Bank (ECB) is responsible for revoking banking licenses in the eurozone. In the case of smaller banks such as Eurocity, it often takes action on the initiative of the relevant national supervisory authority. As Finanz-Szene has learned, there is no longer a license for Eurocity Bank.
In 2016, the then-controlling shareholder Euro Yatirim Holding A.S. sold the majority of the capital and voting rights of Eurocity Bank AG to Austrian shareholders who are not publicly known.
In April 2022, the entire Management Board of the bank was replaced. Before this, the entire Supervisory Board around Chairman Mustafa Sahin, the Turkish financial services provider Euro Yatirim, had also been replaced. Bülent Menemenci and Alexander Frey are currently serving as board members. It is not yet known whether the current regulatory problems are related to the change in leadership.