On 26 July 2016, in accordance with Article 76 of the Law of Ukraine On Banks and Banking, the Board of the National Bank of Ukraine issued Decision No. 165-рш On Declaring STATE LAND BANK Public Joint-Stock Company Insolvent. 

In March 2016, STATE LAND BANK PJCC was classified as problematic in the wake of the revelation of the conflict of interests within the bank.

STATE LAND BANK PJCC has failed to remedy breaches of applicable laws of Ukraine, as was required by the NBU. The NBU has not received from the bank's management team any viable proposals suggesting ways to address the problems currently faced by the bank. Meanwhile, the situation began to deteriorate.  

Given that the Bank has failed to bring its operations into compliance with the requirements set by the NBU within the timeframe prescribed by law, the regulator was required to declare this bank insolvent.

Given that no household deposits were placed with this bank,   the Deposit Guarantee Fund will bear no financial burden.

As a side note, the Cabinet of Ministers of Ukraine established STATE LAND BANK PJCC by Resolution No.609 of 2 July 2012. The bank was charged with the strategic task of providing lending support to agricultural enterprises and implementing government lending programs. However, in the absence of amendments to laws and regulations, since being granted a banking license, the bank has hardly performed any banking activities prescribed by its by-laws.