As part of the already initiated winding-up procedure against BANK CAMBIO PJSC, on February 27, 2015, the National Bank of Ukraine adopted a decision to revoke a banking license and wind up the insolvent BANK CAMBIO PJSC.
As is known, in early December, BANK CAMBIO PJSC was declared insolvent.
The decision to declare this bank insolvent was preceded by findings of the bank's inability to meet its obligations to depositors and creditors, and reports of numerous breaches of the NBU regulations.
Thus, the inspection findings have revealed considerable risks, in particular, credit and liquidity risks in BANK CAMBIO PJSC's operations
The quality of the bank's assets was recognized as poor, whereas the assets provisions proved insufficient. The aforementioned fact led to misreported financials and capital of BANK CAMBIO PJSC and caused a large liquidity deficit that was linked to the poor asset quality and the absence of timely support from the bank's shareholders.
In view of the above, the National Bank of Ukraine declared the bank a problem bank and appointed an NBU overseer to it.
The situation demanded that the bank take urgent measures to improve its liquidity position through the involvement of shareholders into this process and through asset management efforts and channeling the released funds to meet the bank's obligations on time. At the same time, the resolution plan that problem banks are required to submit to the regulator in compliance with applicable laws fell short of timely measures to improve the bank's liquidity position.
On October 20, 2014, the Bank underwent a shareholder reshuffle and a management shake-up (Chairman of the Supervisory Board and Chairman of the Management Board were replaced). However, new shareholders failed to take urgent measures to restore the solvency of BANK CAMBIO PJSC. In particular, at the last shareholders' meeting, the shareholders failed to adopt a decision to increase the authorized capital by UAH 300 million, as envisaged by the meeting agenda.
In view of the above, and in order to protect the interests of depositors and other creditors of the bank, the National Bank of Ukraine Board passed Resolution No 782, dated December 4, 2014 on declaring BANK CAMBIO PJSC insolvent.
In compliance with Article 34 of Section VII of the Ukrainian Law On Household Deposit Guarantee Scheme, the Executive Directorate of the Household Deposit Guarantee Fund (the DGF) placed the bank under a provisional administration for three months from 05.12.2014 until 04.03.2015.
Having considered the DGF proposal concerning liquidation of the insolvent bank, the National Bank of Ukraine has adopted a resolution to revoke a banking license and liquidate BANK CAMBIO PJSC.