2 years ago
Metropolitan Bank Holding Corp., the holding institution for the New York-based Metropolitan Commercial Bank (MCB), announced connected January 9 that it would adjacent its cryptocurrency portion by 2023.
Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding institution for Metropolitan Commercial Bank, contiguous announced that it volition afloat exit the crypto-asset related vertical.https://t.co/JrTOs1y5sX
— Metropolitan Commercial Bank (@MCBankNY) January 9, 2023
While talking astir the crushed for leaving the crypto plus vertical, MCB cited “recent developments successful the crypto-asset industry” and “changes successful the regulatory situation regarding banks.”
MCB presently has 4 progressive institutions that comprise astir 1.5% of its revenues and 6% of its deposits, and frankincense the departure volition person small interaction connected MCB’s financials, according to the property release. Based connected the firm’s Q3 2022 income report, these figures adjacent astir $1 cardinal successful gross and $342 cardinal successful deposits.
Among the services, MCB provided to its clients were debit cards, outgo processing, and relationship management. President and CEO of MCB, Mark R. DeFazio said:
“Crypto-related clients, assets, and deposits person ne'er represented a worldly information of the Company’s concern and person ne'er exposed the Company to worldly fiscal risks.”
However, MCB has assured customers this improvement volition not impact their quality to transact with crypto-currency companies oregon MCB’s work to customers without crypto-asset-related enactment arsenic a main business.
As reported, the slope presently has nary outstanding loans to immoderate of these clients, does not support crypto assets connected its equilibrium sheet, and does not facilitate the merchantability of crypto assets.
The troubles of the crypto assemblage aft Terra-Luna and FTX illness continued this twelvemonth with plummeting deposits, expanding layoffs, and ineligible hurdles.
For instance, much than $8 billion successful crypto-related deposits were withdrawn from Silvergate Capital Corp pursuing the illness of FTX. Consequently, the steadfast sold assets astatine a nonaccomplishment to screen the slope tally and laid disconnected implicit 200 employees – 40% of its workforce.
The station Metropolitan Bank to wantonness crypto plus related vertical appeared archetypal connected CryptoSlate.
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