Let’s be careful… we raise the issue of capital adequacy for Revolut and Viva Wallet in the event of an adverse scenario and what risks consumers – depositors may take out of ignorance.
- Revolut is a bank based in London with co-founders from Ukraine and Russia.
- Viva Wallet is a Greek-owned company and, like Revolut, is a neobanking technology company.
Revolut
Revolut has been involved in fraud many times in the past and a lot of money has been lost. A search on the internet will prove the truth of the matter for Revolut.
With 879 million in capital for a balance sheet of 16.6 billion but without granting loans, it is not a safety net. However, its actual capital is 580 million and with weighted assets of 2.6 billion it may show a high capital adequacy ratio, but it is not clear how sufficient the capital is in an adverse scenario and we do not know to what extent this bank passes the stress tests in an adverse scenario.
It relies largely on the commissions it receives when transferring money, but the lower pricing policies it follows compared to traditional banks are curious.
Banks do business with Revolut but unofficially report that they are cautious.
Viva Wallet
Viva Wallet is an extreme bubble that J P Morgan had to ridicule until it realized that it was not worth the 780 million it offered to a bank that had been making losses until recently and had weak capital even today.
The fact that J P Morgan came back and is demanding 1 billion euros through lawsuits does not justify the American bank that made childish mistakes by paying dearly for a bubble.
Viva Wallet’s funds are not sufficient to cover an unfavorable scenario and the supervisory authorities must weigh the risks more seriously.
The fiasco of the Viva Wallet collaboration with J P Morgan must have set an example for many…
If one looks at Viva Wallet’s capital adequacy ratios of 55%, one would say they are very strong, but evaluating the losses and valuing an unfavorable scenario in a stress test, we are not at all sure that the 150 million, for example. 2023 funds were sufficient.
