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.