The National Bank of Ukraine adopted a decision to declare Public Joint-Stock Company Bank National Investments insolvent. On September 17, 2015, the Board of the National Bank of Ukraine issued Resolution No. 613 to this effect.
The opacity of a number of the Bank's operations and a rapid substantial liquidity squeeze were behind the decision to declare the bank a problem bank and appoint an oversser to the bank.
Following the decision to declare Bank National Investments PJSC a problem bank, evidence was revealed that this bank failed to keep accounting records of the customers' documents that have not been executed in due time as prescribed by law. In view of the above, pursuant to paragraph 3 of part 1 of Article 76 of the Law of Ukraine On Banks and Banking, the Board of the National Bank of Ukraine was obliged to take a decision to declare this bank insolvent.
According to First Deputy Governor of the National Bank of Ukraine Oleksandr Pysaruk, in most cases banks with opaque ownership structure end up under administration of the Deposit Guarantee Fund because of the execution of hazardous and non-transparant operations, which drive these banks into insolvency.
The National Bank keeps a close eye on the operations performed by banks with opaque ownership structure. In addition, it should be noted that the Deposit Guarantee Fund may recognize the bank’s operations as wrongful if they led to a deterioration in the financial standing of a financial institution and driven it into insolvency.