Regular version of site
Skip to content
NBU Declares Misto Bank JSC Insolvent

NBU Declares Misto Bank JSC Insolvent

The NBU Board has declared Misto Bank JSC insolvent after its capital ratios fell by at least 50% from the required minimum levels. The decision was approved in order to protect the interests of depositors and creditors of the bank.

The problems with equity in the bank occurred due to the loss of one of its core assets, a soybean processing enterprise in Kherson oblast. The carrying amount of the real estate was over UAH 271 million (almost 17% of all of the bank’s assets).

As a result, the bank’s equity fell below the required minimum. Taking into account the lack of actions to improve the bank’s standing and given that the operation of Misto Bank JSC did not meet the requirements of banking laws and NBU regulations, today the NBU Board has approved the decision to declare the bank insolvent. 

The fact that Misto Bank JSC was declared insolvent will not influence the stability of the Ukrainian banking sector. Said financial institution accounts for 0.1% of solvent banks’ net assets.

“Irrespective of the situation with Misto Bank, the standing of our banking sector is the best ever. Actually the banks’ capital adequacy is sufficient. The banks have enough funds to meet customer needs. We are always ready to support the banks if their financial standing deteriorates to a point that requires remedying,” the Governor of the National Bank of Ukraine Kyrylo Shevchenko said.

Regarding the funds of the bank’s depositors

78% of depositors of Misto Bank JSC (2,282 persons) will receive their deposits in full. The volume of their deposits does not exceed the UAH 200,000 guaranteed by the DGF.  Larger customer deposits will be reimbursed up to the compensation cap guaranteed by the DGF.

The total possible amount of guaranteed payments to depositors as of 1 November 2020 stands at UAH 307.8 million (60% of the total amount of household deposits). The decision to declare Misto Bank JSC insolvent was approved by NBU Board Decision No. 753 dated 14 December 2020.

For reference

Misto Bank JSC is controlled by Ivan Fursin. He owns (directly and indirectly) 97.18% of the bank’s shares.

 

Tags
Subscribe for notifications

Subscribe to news alerts