On 22 March2015, upon the proposal of the Deposit Guarantree Fund, the National Bank of Ukraine issued Resolution No. 180 on withdrawal of the banking license and liquidation of Ukrinbank PJSC.
With a view to protecting the interests of the bank’s depositors and other creditors, in light of the fact that during September 2015 the Bank’s instant liquidity ratio (Н4) fell below the regulatory minimum value by 5 percent or more, being five-fold lower than the minimum required level, on 1 October 2015, the NBU adopted a decision to declare Ukrinbank PJSC a problematic bank. The NBU set a timeframe for Ukrinbank PJSC to bring its activities into compliance with the requirements of applicable laws.
Following the established procedures, the NBU held meetings with the management team and owners of Ukrinbank PJSC to explore ways to improve the bank's financial position. Ukrinbank PJSC presented the resolution plan which envisaged the involvement of an investor to inject UAH 500 million into the bank to recover its liquidity. As part of the measures set forth in the plan, Ukrinbank PJSC registered a loan agreement to raise funds from a non-resident investor with the NBU. However, the funds were never received by the bank.
In view of the Bank’s failure to comply with the requirements of applicable banking laws and the NBU regulations, a decline in its financial performance and a deterioration in its financial standing, as well as Ukrinbank PJSC’s failure to fulfil the recovery plan, the NBU had to adopt a decision to declare this bank insolvent.
In compliance with Article 34 of Section VII of the Law of Ukraine On Household Deposit Guarantee System, following the decision taken by the National Bank of Ukraine to declare Ukrinbank PJSC insolvent, the Executive Directorate of the Household Deposit Guarantee Fund (the DGF) adopted Resolution No. 239 of 24 February 2015, On the Introduction of the Provisional Administration in Ukrinbank PJSC.