Given the fact that after the end of the business day, on February 12, 2015, in violation to the requirements of the National Bank of Ukraine, ZLATOBANK JSC executed transactions exposing depositors and other creditors of the bank to considerable risk, the Board of the National Bank of Ukraine was compelled to respond immediately and adopt a decision to declare ZLATOBANK JSC insolvent.
As far back as on August 19, 2014, as the first signs of deteriorating liquidity conditions in ZLATOBANK JSC emerged and the bank’s customers lodged complaints against the bank over its failure to meet its obligations to them, ZLATOBANK JSC was placed under special supervision. To this effect, an NBU overseer was appointed to the bank.
In view of the further deterioration in the financial standing of ZLATOBANK JSC, the bank’s involvement in risky operations, breaches of the NBU regulations by the bank, on December 4, 2014, ZLATOBANK JSC was declared a problem bank and a timeframe was set for the bank to take measures to bring its operations into compliance with the applicable banking laws.
The poor financial standing of ZLATOBANK JSC required urgent measures from the shareholders and management of this bank to put the bank back on a sound footing and eliminate the reasons behind the deterioration of its financial standing.
With a view to putting ZLATOBANK JSC back on track and eliminating violations and the reasons behind the deterioration of its financial standing, the National Bank of Ukraine held meetings with the shareholders and managers of ZLATOBANK JSC to address the problems faced by the bank, placed requirements on the bank and provided recommendations, thus urging the shareholders and managers of this bank to take efficient measures aimed at improving its financial standing.
ZLATOBANK JSC has repeatedly submitted to the National Bank of Ukraine the financial rehabilitation plan, which fell short of efficient measures aiming to improve the financial standing of the bank and eliminate all the violations of the NBU regulations. At the same time, even the inefficient resolution plan never materialized.
In view of the above, on February 13, 2015, the Board of the National Bank of Ukraine adopted Resolution No. 105 declaring ZLATOBANK JSC insolvent.