Arab Hellenic Bank
Encyclopedia
The Arab Hellenic Bank was an internationally owned bank based in Greece
.
In 1978, in advance of the founding of the bank, the Greek government granted an exemption to its usual prohibition on foreign banks owning more than 40 per cent of the equity of a Greek bank. This permitted several Arab
banks to establish Arab-Hellenic Bank with 49 per cent Arab ownership. The bank was founded in 1979, with Vassilis Sarantitis — an influential lawyer and for many years chairman of the Arab-Hellenic Chamber of Commerce — as one of the founders. Ownership was 51% National Bank of Greece
, 20% Kuwait
Investment Office, 20% Arab Foreign Investment Bank (a Libya
n institution), and 9% other Arab investors.
In 1993 the Arab Foreign Investment Bank proposed a cash infusion that would take its ownership to 72%. The plan was to take advantage of the EU
"single passport" rules, which would permit Arab Hellenic to open branches in London
and elsewhere in the EU, while subject only to Bank of Greece supervision. The UK
and US
governments protested strongly and blocked the move. In 1995 the Greek government dissolved the insolvent Arab Hellenic Bank at a cost to Greece's Deposit Guarantee Fund of Euro 1.5m in payments to depositors.
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
.
In 1978, in advance of the founding of the bank, the Greek government granted an exemption to its usual prohibition on foreign banks owning more than 40 per cent of the equity of a Greek bank. This permitted several Arab
Arab
Arab people, also known as Arabs , are a panethnicity primarily living in the Arab world, which is located in Western Asia and North Africa. They are identified as such on one or more of genealogical, linguistic, or cultural grounds, with tribal affiliations, and intra-tribal relationships playing...
banks to establish Arab-Hellenic Bank with 49 per cent Arab ownership. The bank was founded in 1979, with Vassilis Sarantitis — an influential lawyer and for many years chairman of the Arab-Hellenic Chamber of Commerce — as one of the founders. Ownership was 51% National Bank of Greece
National Bank of Greece
The National Bank of Greece is the oldest and largest commercial banking group in Greece. The group has a particularly strong presence in Southeastern Europe and the Eastern Mediterranean...
, 20% Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
Investment Office, 20% Arab Foreign Investment Bank (a Libya
Libya
Libya is an African country in the Maghreb region of North Africa bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....
n institution), and 9% other Arab investors.
In 1993 the Arab Foreign Investment Bank proposed a cash infusion that would take its ownership to 72%. The plan was to take advantage of the EU
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
"single passport" rules, which would permit Arab Hellenic to open branches in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and elsewhere in the EU, while subject only to Bank of Greece supervision. The UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and US
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
governments protested strongly and blocked the move. In 1995 the Greek government dissolved the insolvent Arab Hellenic Bank at a cost to Greece's Deposit Guarantee Fund of Euro 1.5m in payments to depositors.