Home » Press centre » News » Archive » 2018 |
NBU Declares VTB Bank JSC Insolvent
|

![]() |
||
The
Board of the National Bank of Ukraine has adopted a decision to declare VTB
Bank JSC insolvent in order to protect the interests of depositors and
creditors of the bank. The decision was adopted pursuant to the requirements of
Article 76 of the Law of Ukraine On Banks
and Banking. Due
to the decrease in liquidity of VTB Bank JSC
and the further worsening of its financial standing over the last month,
the NBU declared VTB Bank JSC a problem bank on 13 November 2018. On that date,
the deadline was set for VTB Bank JSC to take measures to bring its activity in
line with the legislative requirements. Taking into account the lack of real actions by the owners of VTB Bank
JSC to prevent the insolvency, as well as the lack of taken or feasible
measures to improve the bank’s liquidity, and given that the operation of VTB
Bank JSC did not meet the requirements of banking laws and NBU regulations,
today, the NBU took the decision to declare VTB Bank JSC insolvent. The
NBU emphasizes that 97% of depositors of VTB Bank JSC (59,108 persons) will
receive their deposits in full, as their volume does not exceed the amount of
UAH 200,000 guaranteed by the DGF. The larger customer deposits will be reimbursed up to the compensation cap guaranteed by
the DGF. Overall, the DGF will pay out a total of UAH 942.7 million in
compensation to eligible depositors. The
fact that VTB Bank JSC was declared insolvent will not
influence the stability of Ukraine’s banking sector, as the share of the said
financial institution accounts for 0.6% of solvent banks’ net assets. At
present, liquidity of the banking sector amounts to over UAH 75 billion, which is sufficient for its proper and continuous
operation. Declaring VTB Bank JSC insolvent was approved by NBU Board Decision
No. 796-D/BS On Declaring VTB Bank JSC
Insolvent dated 27 November 2018. For reference: VTB Bank JSC Ownership Structure. |