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NBU Revokes Banking Licenses Held by APEKS-BANK and Promyslovo-Finansovyi Bank pursuant to the Procedure for Voluntary Termination of Banking Activities

27 December 2017

Press Release

 

According to NBU Board Decisions No. 827-D and 829-D dated 28 December 2017, the National Bank of Ukraine has revoked the banking and general licenses for conducting FX transactions of APEKS-BANK PJSC (Kyiv) and Promyslovo-Finansovyi Bank PJSC (Kremenchuk), respectively. These banks have taken the decisions to terminate banking activities without losing the status of a legal entity.

 

"We consider the decisions of some banks to terminate banking activity to be a meaningful and grown-up action showing that the banks' shareholders made an adequate assessment of the situation in the market and their own capacity to select and implement a business model of a particular bank," said NBU Deputy Governor Kateryna Rozhkova.

 

"Availability of a viable business model as well as readiness and ability of shareholders to maintain the bank's financial soundness are a key to success of any banking institution. Presently, the possibility of painless transformation into a non-bank financial or nonfinancial institution not only minimizes risks of both depositors and creditors but also provides shareholders with an opportunity to shift to other activities that may be more attractive for them and acceptable for the regulator," she said.

 

The procedure for voluntary termination of banking activity became possible due to adoption of the Law of Ukraine On Simplifying Bank Reorganization and Capitalization Procedures in March 2017.  Earlier, banks could voluntarily terminate their activities only through final liquidation, which created significant disadvantages for their owners, but now bank's shareholders can decide to terminate banking activities without losing the status of a legal entity. Such a legal entity that has ceased to be a bank may continue operating in the financial services market (subject to obtaining appropriate licenses) or carry out other types of economic activity.

 

Revoking banking and a general licenses for conducting FX transactions requires from a bank to agree with the NBU a plan for termination of bank's activities and to fully meet bank's liabilities related to the banking activity.

 

Recently, the NBU has revoked the license possessed by CB Finansovyi Partner PJSC under the same procedure. Credit Optima Bank PJSC has also decided to voluntary terminate its activities.

 


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Last modification   27.12.2017