Two holding companies, British Virgin Islands-based Granvalor Holding Limited and International Bancorp of Miami, registered in Coral Gables, signed a written agreement with the Federal Reserve Bank of Atlanta, according to which they pledged to devise a plan to support the Bank of Miami, owned by them. The Bank was hurt by loan losses, which brought the net loss of $38.6 million in 2009.
The companies agreed to provide a plan to maintain sufficient capital within 60 days. To conserve capital, the pact restricts the payment of dividends or interest on certain debt without regulatory approval.
The agreement with the Federal Reserve Bank of Atlanta was signed on March 22, while formal agreement with the Bank of Atlanta and the Office of the Comptroller of the Currency was signed on January 5, 2009. In this regulatory action, the OCC had directed the bank to come up with a strategic plan, to strengthen lending practices, and to hammer out a plan for maintaining adequate capital.
According to regulatory notices, additional funds invested by Granvalor Holding Ltd into the bank in December 2009 increased its stake in the bank from 49 to 60 per cent.