As part of the already launched resolution procedure in respect of CITY COMMERCE BANK PJSC, on March 19, 2015, the National Bank of Ukraine adopted a decision to revoke a banking license and wind up this bank.
In view of the failure by CITY COMMERCE BANK PJSC to meet its obligations to depositors that fell due five and more than five business days ago, revelations by the National Bank of Ukraine of financial misreporting by the bank, which significantly distorted its true financial position, in May 2014, the National Bank of Ukraine declared CITY COMMERCE BANK PJSC a problem bank and set a timeframe for the bank to take measures to bring its operations into compliance with applicable legal requirements. In addition, the bank was placed under special supervision through the appointment of an NBU overseer.
The resolution plans, which CITY COMMERCE BANK PJSC submitted to the National Bank of Ukraine, fell short of sufficient urgent measures to improve the financial health of the bank.
In order to put CITY COMMERCE BANK PJSC back on track, eliminate violations and the causes that had led to the deterioration in its financial standing, the National Bank of Ukraine repeatedly addressed the owners and the management of CITY COMMERCE BANK PJSC with requirements and recommendations to take effective measures aimed at improving its financial standing.
However, the owners of qualifying holding in CITY COMMERCE BANK PJSC failed to take appropriate, timely measures to recover the bank and bring its operations into compliance with applicable legal requirements, including the NBU regulations.
In compliance with the requirements of Article 76 of the Law of Ukraine On Banks and Banking, and given the lack of prospects for a bank recovery, in order to protect the interests of CITY COMMERCE BANK PJSC's depositors, the Board of the National Bank of Ukraine adopted a decision declaring CITY COMMERCE BANK PJSC insolvent (NBU Board Resolution No 732 dated November 20, 2014).
In compliance with Article 34 of the Ukrainian Law On Household Deposit Guarantee System, the Executive Directorate of the Household Deposit Guarantee Fund (the DGF), on the next business day after the bank was declared insolvent by the NBU, placed the bank under a provisional administration (for the period from 21.11.2014 to 20.02.2015), and appointed an authorized person to that effect. On 17.02.2015, the DGF Executive Directorate adopted a decision to prolong the provisional administration at CITY COMMERCE BANK PJSC till 20.03.2015.
Having considered the DGF proposal concerning liquidation of the insolvent CITY COMMERCE BANK PJSC, the National Bank of Ukraine has issued a resolution to revoke a banking license held by CITY COMMERCE BANK PJSC and wind up this bank.