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Insolvent OMEGA BANK PJSC under Liquidation

As part of the already launched winding-up procedure in respect of OMEGA BANK PJSC, on July 6, 2015, the National Bank of Ukraine adopted a decision on withdrawal of the banking license and liquidation of this bank.

Given OMEGA BANK PJSC's involvement in risky activities, as evidenced by deteriorating performance indicators, which posed threats to the interests of depositors and other creditors of this bank, in January 2015, the bank was declared a problem bank and the NBU employee was appointed as a supervising officer to this bank.

After this bank had been adjudicated a problem bank, its performance indicators deteriorated markedly,  the regulatory capital slipped into negative territory, and the bank suffered losses and failed to ensure compliance  with the regulatory capital adequacy ratio (R2) and the reserve requirements  set by the National Bank of Ukraine for provisions on the correspondent account with the NBU.  Given that activities of OMEGA BANK PJSC failed to comply with the requirements of applicable banking laws and NBU regulations, in March 2015, this bank was declared insolvent.

In compliance with Article 34 of the Ukrainian Law On Household Deposit Guarantee System, the Executive Directorate of the Household Deposit Guarantee Fund (the DGF) adopted decision No.52 of 02.03.2015 On the Introduction of the Provisional  Administration in OMEGA BANK PJSC, whereby this bank was placed under provisional administration  for three months from 03.03.2015 till 02.06.2015 (prolonged until 03.07.2015) and DGF’s authorized officer was appointed to this effect.

 In accordance with Article 39 of the Law of Ukraine On Household Deposit Guarantee System, the Fund has approved the resolution plan to wind up the bank through the establishment of a bridge bank, which is to be sold to an investor that would assume assets and liabilities of the insolvent OMEGA BANK PJSC with the subsequent liquidation of this bank.

Having considered the DGF proposal, the Board of the National Bank of Ukraine passed Resolution No.437,  dated July 6, 2015, on revoking a banking license and winding up OMEGA BANK PJSC.

Information for depositors of OMEGA BANK PJSC is available on the Fund's website.

For reference

As of July 7, 2015, 129 banks operate in Ukraine (excluding banks under provisional administration) including 40 banks with foreign capital.

During 2014 – 2015, within the framework of banking system clean-up, the National Bank of Ukraine adopted 51 decisions to put banks into the category of “insolvent banks”, including 18 decisions made in 2015. In 2014 - 2015, banking licenses were revoked from 44 banks that were liquidated (including the banking licenses held by banks located in AR Crimea and Sevastopol, which were cancelled). Among them 25 licenses were withdrawn in 2015.

In total, as of today, the category of insolvent banks comprises 9 banks, while 49 banks are under liquidation.

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