On 19 January 2017, the Board of the National Bank of Ukraine issued Decision No.34-D/BS on declaring BANK PEOPLE'S CAPITAL PJSC insolvent.
In July 2016, BANK PEOPLE'S CAPITAL PJSC was classified as problematic due to the non-compliance of the bank’s ownership structure with transparency requirements. During the period since being identified as problematic, the bank failed to bring its operations into compliance with regulatory requirements. However, the NBU has urged the bank and its shareholders to address this problem since December 2014.
As of today, over 85% of the bank's shares are held by some individuals, with none of them being qualifying shareholders. The sole qualifying shareholder in the bank is Mr Valerii Makarenko (14.24%), who acquired a qualifying holding in breach of the law without getting approval from the NBU, which led him being stripped of the voting rights.
During 2016, several packages of documents were submitted to the NBU by the bank’s shareholders and third parties seeking approval for the acquisition of a qualifying holding in this bank. The NBU rejected these documents and adopted a decision banning the acquisition of a qualifying holding due to the poor financial standing of applicants and their inability to prove the source of funds.
According to information available to the NBU, on 16 January 2017, the bank adopted a decision on voluntary liquidation and submitted documents to the NBU seeking the latter’s approval for liquidation. Pursuant to Article 78 of the Law of Ukraine On Banks and Banking, such approval can be granted only if there are no signs based on which the NBU can declare a bank problematic or insolvent. This being said, as mentioned above, BANK PEOPLE'S CAPITAL PJSC had already been declared problematic by the time documents were submitted to the NBU. Therefore, the NBU cannot accept an application filed by the bank.
Funds of 99% of depositors will be reimbursed by the Deposit Guarantee Fund (hereinafter - the DGF) in full. The DGF will pay out a total of about UAH 11 million in compensation to eligible depositors.