In the course of removing the insolvent IMEXBANK JSC from the market, on May 21, 2015, the National Bank of Ukraine adopted a decision on withdrawal of the banking license and liquidation of this insolvent bank, effective from May 27, 2015.
Given the deterioration in the financial standing of IMEXBANK JSC, the bank's involvement in risky operations, violations of the NBU regulations, in January 2015, this bank was declared insolvent and a timeframe was set for IMEXBANK JSC to take measures to bring its operations into conformity with the applicable banking laws.
In view of the poor financial standing of the bank, the shareholders and managers of this bank ought to have taken urgent, effective measures to restore the health of the bank and eliminate the reasons behind the deterioration in its financial standing.
However, in violation of the requirements of Article 75 of the Law of Ukraine On Banks and Banking and the Regulation on the Application by the National Bank of Ukraine of Corrective Measures for Violation of the Banking Legislation approved by NBU Board Resolution No. 346 dated August 17, 2012, IMEXBANK JSC failed to submit to the National Bank of Ukraine a resolution plan containing sufficient and time measures required to improve its financial standing and bring its operations into conformity with the applicable banking laws.
Given the incompatibility of IMEXBANK JSC's operations with the requirements of applicable banking laws and NBU regulations, IMEXBANK JSC's failure to take sufficient and timely measures to remedy violations, which constituted the grounds for declaring the bank a problem bank, as well as the absence of the resolution plan, and given the financial standing of IMEXBANK JSC, on January 26, 2015, the Board of the National Bank of Ukraine adopted a decision to declare IMEXBANK JSC insolvent.
In compliance with Article 34 of the Ukrainian Law On Household Deposit Guarantee System, on January 26, 2015, the Executive Directorate of the Household Deposit Guarantee Fund (the DGF) passed Resolution No. 16 to place IMEXBANK JSC under provisional administration for the period from 27.01.2015 to 26.04.2015, and appoint an authorized person of the Fund Yurii Severyn to that effect.
The Resolution Plan to wind up the insolvent IMEXBANK JSC and pay compensation to depositors was approved by Resolution of the Executive Directorate of the Fund, dated March 26, 2015.
On April 23, 2015, the DGF Executive Directorate issued Resolution No. 84 prolonging the provisional administration at IMEXBANK JSC till May 26, 2015.
Having considered the proposal of the Fund concerning liquidation of IMEXBANK JSC, the National Bank of Ukraine has approved Resolution on revoking the banking license held by IMEXBANK JSC and winding up this bank.
Information for depositors of IMEXBANK JSC is available on the Fund's website.
For reference
As of 28 May 2015, 131 banks operate in Ukraine (excluding banks under temporary administration) including 40 banks with foreign capital.
During 2014 – 2015, within the framework of banking system clean-up, the National Bank of Ukraine adopted 48 decisions to put banks into the category of “insolvent banks”, including 15 decisions made in 2015. In 2014 - 2015, banking licenses were revoked from 38 banks that were liquidated (including the banking licenses held by 2 banks located in AR Crimea and Sevastopol, which were cancelled). Among them 19 licenses were withdrawn in 2015.
In total, as of today, the category of insolvent banks comprises 12 banks, while 43 banks are under liquidation.