KIEV: On June 24 the National Bank of Ukraine (NBU) decided to revoke the banking license of insolvent bank Kyiv and liquidate it, the regulator said in on its website.
“After considering the proposal of the fund [the Individuals’ Deposit Guarantee Fund], the NBU issued a resolution on revoking the banking license of insolvent Bank Kyiv and its liquidation,” the NBU said in the report.
According to the report, in August 2014 the NBU decided to put Bank Kyiv on the list of troubled banks. The financial readjustment plan of the bank did not include effective measures aimed at improving its financial state and bringing its operations in line with the requirements of Ukrainian law. On February 24, the NBU decided to put the bank on the list of insolvent banks. Temporary administration was introduced from February 25 for three months and subsequently extended for one month – until June 24.
As reported, on June 25 government-controlled Ukrgasbank (Kyiv) finished the procedure of joining the assets and liabilities of bank Kyiv.
The special procedure was applied to Bank Kyiv which will allow the bank to be removed from the market and its deposits will be transferred to another bank with a state owned stake – Ukrgasbank.
Bank Kyiv was established in 1993. The bank was transferred to the control of the state during the implementation of an anti-crisis program to recapitalize crisis-hit banks. The Finance Ministry’s stake in the bank as of early January 2015 was 99.9369%.
Bank Kyiv ranked 67th among 158 operating banks as of January 1, 2015, in terms of total assets worth UAH 1.485 billion, according to the NBU.
