The situation of the bank had been deteriorating since 2009 as reported by the Superintendence of Banks, which is why several adjustments were made and also a plan to be carried out until 2013. It was decided to close it, in order to ensure depositors.
What were the causes?
Past-due loan Portfolio and lack of credit support
According to the latest report from the rating agency PCR Pacific, issued in June of 2012, the past-due loan portfolio and the deficiency of provisions appeared as the main problems of the Territorial Bank.
The Camel analysis also used as a qualifier for financial institutions, on December 2012 stated that the Territorial Bank was at the bottom of the banking rank in capital adequacy, quality of assets and liquidity. As for the quality of their loans, they had an 18% on past-due portfolio.
Untying of companies in 2012
Under the Constitution and the Anti Monopoly Act, banks must untie from non-financial institutions, in this case the Territorial Bank and its shareholders lost control of Casa Comercial Tosi and the insurance company Porveseguros.
The companies were part of the Zunino Group and the imposed decouple forced the sale of their shares. The buyer of the shares of Porveseguros and Casa Tosi was the Swiss company Soprex.
Analyst Alberto Acosta Burneo believes that the critical issue was the close relationship between the Territorial Bank and Casa Comercial Tosi, so at the time of the untying from the credit card that was linked between the two institutions, it had a major impact on their activities.