Having considered the proposal of the Deposit Guarantee Fund concerning liquidation of the insolvent EXPOBANK JSCB, on January 22, 2015, the Board of the National Bank of Ukraine adopted a decision to revoke a banking license and wind up EXPOBANK JSCB.
In view of the worsening of EXPOBANK JSCB performance indicators and its increasing exposure to risk, in mid-August 2014, the National Bank of Ukraine introduced a special monitoring regime to control the bank’s activities by appointing an overseer who is an official of the NBU.
Within this period, in order to put EXPOBANK JSCB back on track and eliminate violations and the reasons for deterioration of its financial standing, the National Bank repeatedly addressed the owners and the management of the bank with requirements and recommendations to take effective measures aimed at improving the financial health of the bank. However, the shareholders and management of EXPOBANK JSCB failed to take actions needed to put the bank's operation back on track.
As the situation deteriorated and EXPOBANK JSCB was unable to meet its obligations to depositors and other creditors and violated provisions of the NBU regulations, the regulator declared the bank a problem bank in early September 2014.
EXPOBANK JSCB failed to comply with the laws and NBU regulations and submit to the NBU the resolution plan containing sufficient and timely measures needed to improve the financial health of the bank and adjust its activities to the requirements of the laws of Ukraine. The shareholders of EXPOBANK JSCB missed the chance to recover the bank and failed to provide financial support.
In view of the above, by virtue of Article 76 of the Law of Ukraine On Banks and Banking, the Board of the National Bank of Ukraine issued Resolution No. 597 of 24.09.2014 declaring EXPOBANK JSCB insolvent.
In compliance with Article 34 of the Ukrainian Law On Household Deposit Guarantee Scheme, the Executive Directorate of the Household Deposit Guarantee Fund (hereinafter – the DGF), on the next business day after the bank was declared insolvent by the NBU, placed the bank under a provisional administration (for the period from 25.09.2014 until 25.12.2014), and appointed an authorized person to that effect. On December 25, 2014, the DGF Executive Directorate issued Resolution No. 163 prolonging the provisional administration at EXPOBANK JSCB for one month till 24.01.2015.
Having taken into account the Fund's rationale for the decision on winding up the insolvent EXPOBANK JSCB, the National Bank of Ukraine has taken a decision to revoke a banking license and liquidate EXPOBANK JSCB.