On 18 November 2016, the Board of the National Bank of Ukraine gave its approval for the voluntary liquidation of Finexbank PJSC and ordered a revocation of the bank’s licenses.
The decision on voluntary liquidation of Finexbank PJSC was taken at the shareholders general meeting on 22 September 2016. The reason behind this decision is the turmoil in the financial and banking services market and uncertainty over possible ways to increase the Bank’s capital and the funding sources needed for the bank’s recapitalization program.
In case of a voluntary liquidation, a bank meets all its liabilities to customers and the Deposit Guarantee Fund is not put under financial burden.
As of 17 November 2016, Finexbank PJSC had sufficient liquidity to meet its liabilities to customers. The highly liquid funds (cash, securities issued by the NBU, and amounts held in the correspondent account at the NBU) amounted to UAH 21 million. Finexbank PJSC’s total liabilities amounted to UAH 6.5 million, including liabilities to corporate clients – UAH 3.5 million, and liabilities to individual clients – UAH 0.9 million. Therefore, the bank has sufficient liquid funds to fully meet its liabilities to creditors and depositors without having to raise funds externally.
In June 2016, the NBU Board issued the first decision approving the liquidation of FINANCE BANK PJSC and INVESTMENT TRUST BANK upon the initiative of their owners.