Frequently asked questions

What is the difference between Asset management and Trust transactions?
Asset management is quite standardised product including asset management on behalf of the customer, namely, assets are held on customer's account and the asset manager executes the transaction as an authorised representative.

Trust services are much more individual and based on mutual confidence, as the customer places the assets with the provider of trust services, but the Bank offers its name.

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Is Trust service the same product as “loan – deposit”?
Trust transaction can entirely replace the well known “loan – deposit”. As a rule, banks are usually unwilling to grant loans, secured by 3 rd person' s deposits. Bank acts as a negotiator in a Trust deal and implements loan of one person for another.

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How long does it take to complete Trust transaction?
Trust service is an individual product based on mutual confidence. Execution of such a deal can take approx. 2-3 weeks from the moment when a client applies for such a service. If a client is not Bank's current customer, this procedure can require longer time, however, it mainly depends on client's needs, sociability and integrity.

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Does the loan agreement mention that the loan is granted from the investor's funds?
No! During the process of trust transaction, only Bank appears as a lender in the loan agreement. Trust service implies that all transactions are carried out on behalf of the Bank – Bank employs its reputation in each deal.

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How safe is Trust management?
Funds under Trust management are kept within separate Trust transaction balance, out of the Bank's assets. Therefore, trust funds are not subject to general conditions of Bank' s credit liabilities, even in case of Bank's insolvency. Nevertheless, trust operations are based on principles of mutual reliance and we highly recommend committing your funds under Trust management only if bank's financial stability, professional skills in Trust field and other services, as well as its reputation inspire confidence and trust.

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Where to apply for Trust transaction?
Trust Operation Group of Parex Banka is in charge of Trust transactions process. Trust Operation Group specialists will provide you with the necessary information considering your requirements, offer solutions, draw up an individual agreement. You can contact us by phone +371 6 7010 966, e-mail address trust@parex.lv, apply for assistance and consultation to your Bank's manager, or in any representative office of the Bank.

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