On 22 July 2023, the Ministry of Finance of Ukraine and the Deposit Guarantee Fund (“the DGF”) signed an agreement whereby the state bought 100% of the shares of the systemically important bank SENSE BANK JSC (“the Bank”). As a result, the Bank is now state property.
The deal will help safeguard the interests of the Bank’s depositors and ward off threats to Ukraine’s financial stability.
As previously reported, the NBU Board on 20 July 2023 adopted a decision to resolve the systemically important bank SENSE BANK JSC. Pursuant to this decision, the DGF Executive Board moved to impose a provisional administration at the Bank.
The Cabinet of Ministers of Ukraine accepted the NBU’s proposal, passed the Resolution On the State’s Participation in Resolving the Systemically Important Bank, and designated the Ministry of Finance of Ukraine to manage corporate rights pertaining to SENSE BANK JSC shares owned by the state.
In accordance with the Law of Ukraine On Households Deposit Guarantee System, the DGF appointed executives to run the Bank. These candidates were nominated by the Ministry of Finance of Ukraine and approved by the NBU. They will take over as soon as the DGF’s provisional administration terminates.
Dmytro Kuzmin was appointed Chairman of SENSE BANK JSC’s Board.
Resolution No. 739 of the Cabinet of Ministers of Ukraine On the State’s Participation in Resolving the Systemically Important Bank dated 21 July was adopted pursuant to the Law of Ukraine No. 3111–IX On Amendments to Certain Laws of Ukraine on Streamlining the Procedure for Bank Resolution under Martial Law dated 29 May 2023 and the Laws of Ukraine On Banks and Banking and On Households Deposit Guarantee System.
The Law of Ukraine On Amendments to Certain Laws of Ukraine on Streamlining the Procedure for Bank Resolution under Martial Law (“the Law”) establishes a special procedure to resolve a systemically important bank if it or its qualifying holder(s) come under sanctions, including before the Law takes effect, from foreign states (except for states that have perpetrated, or are perpetrating, armed aggression against Ukraine as defined by the Law of Ukraine On the Defense of Ukraine) or from multistate associations or international organizations, and/or if sanctions have been applied, under the Law of Ukraine On Sanctions, that pose a threat to the interests of depositors or other creditors of the bank and/or to the stability of the banking system by depriving the sanctioned entity of the right to dispose of the bank’s assets.
The law enables the Ministry of Finance of Ukraine, on behalf of the state, to participate in resolving a systemically important bank that the NBU deems should undergo resolution on grounds envisaged by the Law of Ukraine On Banks and Banking if such grounds emerge in the course of russia’s armed aggression against Ukraine.