On 25 December 2015, the National Bank of Ukraine, upon the proposal of the Deposit Guarantee Fund, issued Resolution No. 939 On Revoking a Banking License and Liquidating Union Standard Bank PJSC.
In September 2015, the Bank was declared problematic due to growing information security risks.
In late September, Union Standard Bank PJSC performed cash transactions on a large scale. Such operations could have deteriorated the financial standing of the Bank, and consequently jeopardize the security of funds deposited by the Bank’s depositors and other creditors.
Additionally, in violation of a ban, Union Standard Bank PJSC began entering into agreements on the provision of comprehensive banking services with individuals, which could have increased the burden on the Deposit Guarantee Fund.
Pursuant to paragraph 6 of part 1 of Article 76 of the Law of Ukraine On Banks and Banking, the NBU is obliged to take a decision to declare a bank insolvent in case of a failure by a problematic bank to comply with the NBU’s decision (including that on the application of corrective measures/sanctions).