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Unison standard bank PJSC declared insolvent

The Board of the National Bank of Ukraine has adopted a decision on declaring Unison standard bank PJSC insolvent. On October 2, 2015, Resolution No. 665 was issued by the Board of the National Bank of Ukraine to this effect. 

“One more bank with an opaque ownership structure has been put into resolution. “We have completed the banking system clean-up. However, banks violating the banking laws and regulations and performing suspicious operations should be withdrawn from the market. We pay considerable attention to the transparency and stability of the banking system, and we are set to clamp down on violators of the banking laws,” stressed Director of the Banking Supervision Department Kateryna Rozhkova.

Unison standard bank PJSC was among the banks that have been served a letter from the National Bank notifying it of its non-transparent ownership structure and demanding it to bring it into compliance with applicable laws or regulations. The opaque ownership structure led the regulator to place the bank under enhanced supervision.

In September 2015, the bank was declared a problem bank due to growing information security risks.

Over the past few days, Unison standard bank PJSC has ramped up cash transactions. Such operations could have deteriorated the financial standing of the bank, and consequently put the security of funds deposited by the bank depositors and other creditors at stake.

In addition, in violation of a ban, Unison standard bank PJSC began entering into agreements on comprehensive banking services with individuals, which could have increased the burden on the Deposit Guarantee Fund.

In view of the above, pursuant to paragraph 6 of part 1 of Article 76 of the Law of Ukraine On Banks and Banking, the National Bank of Ukraine is obliged to declare the bank insolvent in case of a failure by a problem bank to comply with the NBU’s decision (including that on the application of corrective measures/sanctions).

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