As signs of deteriorating liquidity conditions in IMEXBANK JSC emerged and the National Bank of Ukraine started receiving complaints about the bank's failure to meet its obligations on time, in mid-August 2014, the National Bank of Ukraine introduced a special monitoring regime to control the bank’s activities by appointing an overseer who is an official of the NBU.
Given further deterioration of the financial standing of IMEXBANK JSC, bank's involvement in risky operations and violation of the NBU regulations, on January 15, 2015, IMEXBANK JSC was declared a problem bank and a deadline was set for the bank to bring its activities in line with the Ukrainian applicable laws.
In view of the poor financial standing of IMEXBANK JSC, the shareholders and managers of this bank were to take urgent, effective measures aiming to improve the financial health of the bank and eliminate the reasons behind the deterioration in its financial standing.
However, in violation of Article 75 of the Law of Ukraine On Banks and Banking, IMEXBANK JSC failed to submit to the National Bank of Ukraine the resolution plan containing sufficient and timely measures for improving its financial standing and adjusting its activities to the requirements of the laws of Ukraine.
In addition, the National Bank of Ukraine detected transactions that IMEXBANK JSC had carried out in violation of the NBU regulations, in particular, those related to the early repayment of funds raised from investors on subordinated debt terms, which led to a reduction in the bank's capital and a material deterioration in its liquidity conditions.
Given the incompatibility of IMEXBANK JSC's operations with the requirements of applicable banking laws and regulations, IMEXBANK JSC's failure to take sufficient and timely measures to eliminate violations, which laid down the grounds for declaring the bank a problem bank, absence of the resolution plan for IMEXBANK JSC, and given the financial standing of IMEXBANK JSC, on January 26, 2015, the Board of the National Bank of Ukraine adopted a decision to declare IMEXBANK JSC insolvent.