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Central Bank of Ukraine liquidates first commercial bank Ukrinbank

The National Bank of Ukraine (NBU) decided to remove the banking license of one of the major banks of Ukraine - Ukrinbank - and liquidate the bank
Central Bank of Ukraine liquidates first commercial bank Ukrinbank

The National Bank of Ukraine (NBU), under a proposal of the Individuals’ Deposit Guarantee Fund, decided to remove the banking license of public joint-stock company Ukrinbank and liquidate the bank, the NBU regulator has said on its website, Joinfo.ua reports with reference to Interfax.

Ukrinbank ranked 27th among 123 operating banks in the country on October 1, 2015 by total assets (UAH 5.832 billion), according to the NBU.

The NBU said that Ukrinbank on October 1, 2015 was placed on the list of troubled banks. The bank violated an instantaneous liquidity requirement in September 2015. The bank submitted a financial readjustment plan. The plan envisaged the attraction of UAH 500 million in equivalent from an investor and restoration of liquidity. The bank did not receive the investor’s funds.

The bank was placed to the list of insolvent banks. The Deposit Guarantee Fund introduced temporary administration on December 24, 2015.

The fund scheduled the bank liquidation procedure for the period of March 23, 2016 through March 22, 2018.

Kyiv’s district administrative court on March 16, 2016 declared void and dismissed NBU resolution No. 934 dated December 24, 2015 on placing public joint-stock company Ukrinbank to the list of insolvent banks.

Ukrinbank was founded in 1989. Its largest shareholder on July 10, 2015 was Volodymyr Klymenko (71.1514%).

As of December 1, 2015, the total loss of operating Ukrainian banks (excluding insolvent banks’ loss), amounted to UAH 57.3 bln, including UAH 1 billion as of 1 November, 2015.