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NBU Declares FORWARD BANK JSC Insolvent

NBU Declares FORWARD BANK JSC Insolvent

The NBU Board has approved a decision to declare FORWARD BANK JSC insolvent. Said financial institution accounts for 0.1% of solvent banks’ assets. The fact that FORWARD BANK JSC was declared insolvent will not influence the stability of the Ukrainian banking sector.

The respective decision was approved due to the bank’s failure to bring its activities in compliance with the applicable laws and NBU regulations after declaring the bank a problem bank, and taking into account the fact that the bank’s financial standing would continue its substantial and irreversible decline in the absence of effective measures to improve it, as well as inadequate capitalization planned by FORWARD BANK JSC.  

On 24 February 2022, the NBU Board, in accordance with Article 75 of the Law of Ukraine On Banks and Banking, adopted the decision to declare FORWARD BANK JSC a problem bank. The decision was made after establishing the fact that FORWARD BANK JSC engaged in risky activities lacking sufficient income, which may potentially create a risk of a significant reduction in the regulatory capital of the bank and violate the economic ratios established by the NBU.

Since the bank was declared a problem bank, its financial standing has significantly deteriorated and its capital continued to decrease with no prospect of recovery. This, in turn, poses a threat to the interests of the bank’s depositors and creditors.

The Deposit Guarantee Fund will reimburse to each FORWARD BANK JSC depositor the amount of their deposit, including interest accrued as of the end of the day before the date of the resolution procedure, unless otherwise provided for by Article 26 part four of the Law of Ukraine On Households Deposit Guarantee System. The total possible amount of guaranteed payments to depositors as of 21 January 2023 is UAH 1,535.6 million.

As a reminder, after Law of Ukraine No. 2180-IX On Amendments to Certain Laws of Ukraine Concerning Ensuring the Stability of the Households Deposit Guarantee System, dated 1 April 2022, came into force introducing a 100% household deposit guarantee in all banks.

FORWARD BANK JSC was declared insolvent by NBU Board Decision No. 49 dated 7 February 2023.

For reference

The ultimate beneficial owner of FORWARD BANK JSC” is a citizen of the russian federation Rustam Tariko. The respective decision of the National Security and Defense Council of Ukraine on imposing individual sanctions on Rustam Tariko was approved by Presidential Decree in October 2022.

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