In the course of removing the insolvent KYIV PJSCCB from the market, on June 24, 2015, the National Bank of Ukraine adopted a decision on withdrawal of the banking license and liquidation of this insolvent bank.
In August 2014, with a view to protecting the interests of depositors and other creditors of the aforementioned bank, the National Bank of Ukraine adopted a decision to declare KYIV PJSCCB a problem bank and set a timeframe for this bank to bring its activities into conformity with the applicable laws.
The resolution plans presented by KYIV PJSCCB fell short of efficient measures required to improve its financial standing and bring its activities into conformity with the applicable laws.
Pursuant to the requirements of Article 76 of the Law of Ukraine On Banks and Banking and in view of the fact that KYIV PJSCCB's activities failed to comply with the requirements of applicable banking laws and the NBU regulations, the Board of the National Bank of Ukraine issued Resolution No. 128, dated February 24, 2015 declaring KYIV PJSCCB insolvent.
In compliance with Article 34 of the Ukrainian Law On Household Deposit Guarantee System, following the decision taken by the National Bank of Ukraine to declare KYIV PJSCCB insolvent, the Executive Directorate of the Household Deposit Guarantee Fund (the DGF) adopted decision No 39 of February 24, 2015, On the Introduction of the Provisional Administration in KYIV PJSCCB, whereby, from February 25, 2015, this bank was placed under provisional administration and DGF’s authorized officer Oleh I. Kichuk was appointed to perform the provisional administration of the bank for four months until June 24, 2015.
Having considered the proposal of the Fund concerning liquidation of the insolvent KYIV PJSCCB through alienation of all or part of the insolvent bank’s assets and liabilities in favor of assuming bank with revoking the banking license of the insolvent bank and its further liquidation, the National Bank of Ukraine has approved Resolution on revoking the banking license held by KYIV PJSCCB and winding up this bank.
For reference
As of June 25, 2015, 128 banks operate in Ukraine (excluding banks under provisional administration) including 40 banks with foreign capital.
During 2014 – 2015, within the framework of banking system clean-up, the National Bank of Ukraine adopted 51 decisions to put banks into the category of “insolvent banks”, including 18 decisions made in 2015. In 2014 - 2015, banking licenses were revoked from 41 banks that were liquidated (including the banking licenses held by banks located in AR Crimea and Sevastopol, which were cancelled). Among them 24 licenses were withdrawn in 2015.
In total, as of today, the category of insolvent banks comprises 10 banks, while 48 banks are under liquidation..