Taking into account the proposals put forward by the Deposit Guarantee Fund to revoke the banking license held by JSC “BANK GOLDEN GATE” and wind up this bank, guided by applicable Ukrainian laws, on December 4, 2014, the National Bank of Ukraine Board passed a resolution to withdraw the banking license held by JSC “BANK GOLDEN GATE” and liquidate this bank. This said, the banking license, the General license for conducting foreign exchange transactions held by JSC “BANK GOLDEN GATE” will be revoked and the winding-up procedure will be launched from December 5, 2014.
Commenting on this decision passed by the regulator, Director of General Department of Banking Supervision Alla Shulga stated that unfortunately the shareholders of JSC “BANK GOLDEN GATE” had missed out on the opportunity to put the bank back on track, failed to meet the requirements set out by the National Bank and provide financial support to the bank to resume its operation.
As far back as March 2014, in the wake of the revelation of the problems faced by JSC “BANK GOLDEN GATE”, the National bank of Ukraine placed this bank under tight supervision and demanded that the owners and management of JSC “BANK GOLDEN GATE” take urgent efficient measures to address crisis developments and ensure the unconditional execution of payments and repayment of deposits.
The bank's inability to repay deposits to individuals caused by the poor quality of credit portfolio has resulted from involvement in asset-side transactions exposing the bank to undue risks.
In view of the above, in compliance with article 76 of the Law of Ukraine "On Banks and Banking", the Board of the National Bank of Ukraine adopted a decision declaring JSC “BANK GOLDEN GATE” insolvent (Resolution No. 456, dated July 31, 2014).
In order to meet the requirements of Article 34, Section VII of the Law of Ukraine “On Household Deposit Guarantee Scheme”, on the next working day following the adoption by the National Bank of Ukraine of decision declaring the bank insolvent, the Executive Board of the Deposit Guarantee Fund appointed the provisional administration to the bank from August 4, 2014 until November 4, 2014 and appointed a DGF overseer authorized to fulfill the mandate of the provisional administration. On October 31, 2014, the Executive Board of the Deposit Guarantee Fund adopted Decision No.14 to extend the provisional administration at JSC “BANK GOLDEN GATE” for one month until December 4, 2014.
Given these developments,, on September 18, 2014, the Fund approved the Resolution Plan for insolvent JSC “BANK GOLDEN GATE”, which envisaged the removal of insolvent bank by alienating all or portion of its assets and liabilities to the bridge bank with the revocation of the banking license held by the bank and its subsequent liquidation.