Beirut Hellenic Bank wary of Cypriot strife

Beirut Hellenic Bank yesterday acknowledged some unease on the part of its customers, given its former ownership by Laiki Bank of Cyprus.

Bank of Lebanon (as it was was known then) bought Laiki Bank Australia from its vendor, Marfin Laiki Bank, in early 2011 and changed the name of the bank to Beirut Hellenic.

To combat this unease, Beirut Hellenic has provided "an update on recent business developments, which will strengthen its ability to deliver a high quality service to customers across Australia", on its website.

Beirut Hellenic Bank said it was currently 92.5 per cent owned by Bank of Beirut and that Beirut Hellenic Bank "will shortly be 100 per cent owned by Bank of Beirut."

The bank said that thanks to oversight by the Australian Prudential Regulation Authority, and because of the Australian government deposit guarantee, "Beirut Hellenic Bank will therefore not be impacted by the situation in Cyprus or any other overseas financial crisis."

Beirut Hellenic Bank had A$600 million in retail deposits and reported a capital adequacy ratio at December 2012 of 23.1 per cent.