Greek central bank liquidates small lender TBank

Greece's central bank liquidated ailing TBank, one of the country's smallest lenders, on Saturday, forcing it to merge with state-run Hellenic Postbank.
"TBank's license has been revoked and the bank has been put into liquidation," the Bank of Greece said in a statement.
This is the second intervention of the Bank of Greece to shore up a small lender in trouble. In October, it activated a rescue fund to save Proton Bank, effectively nationalising the company, which is being probed by the central bank for possible money-laundering violations.
State-controlled Hellenic Postbank (TT) had already agreed in June to merge with TBank, in which it holds a 33% stake.. But Hellenic's shareholder meeting failed last month to attract a quorum to approve the deal.
Troubled with bad loans, TBank, with a network of 68 branches and a market share of less than 1%, was asked by the central bank to boost capital after its Tier 1 ratio fell to 2.25%.
"This action was taken because of the inability of TBank to restore its capital adequacy, despite the repeated efforts by the Bank of Greece to correct TBank's weaknesses," the central bank said.
Postbank took over all of TBank's deposits, workers and assets after an auction. "The funding gap between the transferred assets and liabilities is covered by the Hellenic Deposit and Investment Guarantee Fund," the Bank of Greece said.