The National Bank of Ukraine has taken a decision on revoking a banking license and liquidating ACTIVE BANK PJSC.
According to the NBU’s First Deputy Governor Oleksandr Pysaruk, since April of this year there was deterioration in the financial standing of ACTIVE BANK PJSC due to the poor assets quality causing liquidity problems and non-fulfillment of obligations to investors and creditors.
In view of the bank’s inherent risks, including credit, liquidity, and reputational risks, violation of NBU’s prudential requirements, complaints from customers about non-fulfillment of obligations, unscheduled inspection of ACTIVE BANK PJSC was initiated and conducted as of 22.05.2014.
“Inspection detected violations of NBU’s regulations, non-fulfillment of obligations to depositors and other creditors by ACTIVE BANK PJSC as a result of which in June 2014 ACTIVE BANK PJSC was declared problem bank and the NBU employee was appointed as a supervising officer”, said Pysaruk.
He added that under banking laws a term was set for ACTIVE BANK PJSC to bring its activities in line with the applicable laws.
However, the new owners did not take urgent measures to improve bank's liquidity. The shareholders failed to provide funds that would be sufficient for settlements with households. ACTIVE BANK PJSC was not able to fulfill its obligations. Oleksandr Antonov, the bank’s shareholder, has not made every reasonable effort to find new solutions for financing problems, instead, during his presence at ACTIVE BANK PJSC alienation of the assets in favor of some creditors was performed.
In view of the above, by virtue of Article 76 of the Law of Ukraine On Banks and Banking, the Board of the National Bank of Ukraine issued Resolution No. 545 of September 12, 2014 declaring ACTIVE BANK PJSC insolvent. Deposit Guarantee Fund (DGF) appointed a provisional administrator for three months from 03.09.2014 to 03.12.2014, that was extended to 24.12.2014.
“During this period the DGF was looking for an investors or an assuming bank. However, the quality of ACTIVE BANK PJSC assets was unsatisfactory, so the bank’s rehabilitation failed. The only option is to liquidate the bank”, said Pysaruk.
In view of the above, the DGF made a suggestion to the National Bank of Ukraine to liquidate the bank and to revoke its license.
The National Bank of Ukraine Board has taken a decision on revoking a banking license and liquidating ACTIVE BANK PJSC from 24.12.2014.