Economy 2024-06-15T05:17:20+03:00
Ukrainian news
NBU Categorizes Forward Bank As Insolvent

NBU Categorizes Forward Bank As Insolvent

NBU, National Bank of Ukraine, insolvent bank, Bank Forward

The Board of the National Bank has decided to classify Bank Forward JSC as insolvent.

This is stated in the NBU message, Ukrainian News Agency reports.

The National Bank notes that the share of financial institutions amounted to 0.1% of the assets of solvent banks, therefore, the classification of Bank Forward JSC as insolvent will in no way affect the stability of the banking sector of Ukraine.

The corresponding decision was made in connection with the failure of the bank to comply with the requirements of the legislation, including regulatory acts of the National Bank after categorizing it as problematic, as well as taking into account the further significant and irreversible deterioration of the financial condition of this bank in the absence of effective measures to improve it and the impossibility and insufficiency of the planned capitalization.

On November 24, 2022, the Board of the National Bank, guided by Article 75 of the Law "On Banks and Banking Activity," decided to classify Bank Forward JSC as a troubled bank.

The basis for such a decision was the establishment of the fact of carrying out risk activities on the basis of insufficient income of the bank, which in the future creates a risk of a decrease in its regulatory capital and violation of the economic capital standards established by the National Bank.

Since the bank was classified as a troubled bank, its financial condition has deteriorated significantly, the fall in capital continued without prospects for its improvement.

This, for its part, poses a threat to the interests of depositors and creditors of the bank.

According to the report, each depositor of Forward Bank will receive a refund from the Deposit Guarantee Fund in full, including interest accrued at the end of the day preceding the day of the start of the procedure for withdrawing the bank from the market, except as provided for in part four of Article 26 of the law "On the Deposit Guarantee System."

In general, the possible amount of payments of the guaranteed amount to depositors as of January 21, 2023 is UAH 1,535.6 million.

As Ukrainian News Agency earlier reported, Rustam Tariko, a citizen of the Russian Federation, is the ultimate beneficial owner of Bank Forward JSC.

By decree of the President of Ukraine in October 2022, the corresponding decision of the National Security and Defense Council, which applied personal sanctions to Tariko, was put into effect.