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ARTICLE · 30 AUGUST 2024

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FlowBank Liquidation: Quo Vadis FINMA?

Lindemann Rechtsanwälte
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On June 13, 2024, the Swiss Financial Market Supervisory Authority (FINMA) initiated bankruptcy proceedings against FlowBank SA, a Geneva-based neobank.

SwitzerlandInsolvency/Bankruptcy/Re-Structuring
Dr. iur. Alexander Schiemenz
Dr. iur. Alexander Schiemenz

On June 13, 2024, the Swiss Financial Market Supervisory Authority (FINMA) initiated bankruptcy proceedings against FlowBank SA, a Geneva-based neobank. This decisive action was driven by the bank's failure to maintain the minimum capital required for its operations, raising serious concerns about potential over-indebtedness. The intervention's primary goal is to safeguard depositors, with current estimates suggesting that all privileged deposits can be fully reimbursed from the bank's existing resources. The FlowBank case underscores the significant challenges that digital banks face in maintaining financial stability and adhering to regulatory compliance in a fast-evolving sector.

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