2023-09-08T13:14:00+03:00 Economy 2024-08-15T04:49:11+03:00

Ukrainian news

NBU recognizes Ukrbudinvestbank as insolvent

NBU recognizes Ukrbudinvestbank as insolvent

The Board of the National Bank of Ukraine (NBU) adopted decision No. 310-rsh/BT on classifying JSC Ukrainian Construction and Investment Bank (Ukrbudinvestbank) as insolvent.

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

The share of the financial institution amounted to 0.04% of the assets of solvent banks as of September 1, 2023, therefore, classifying JSC Ukrbudinvestbank as insolvent does not affect the stability of the banking sector of Ukraine.

The decision was adopted in connection with the non-fulfillment by JSC Ukrbudinvestbank of the written request of the National Bank of Ukraine, failure to take into account the full extent of the National Bank's comments to the action plan, lack of effective measures to improve the financial condition and bring the bank's activities into compliance with the requirements of the legislation of Ukraine, including among the regulatory and legal acts of the National Bank, after classifying it as problematic, increasing risks regarding JSC Ukrbudinvestbank fulfilling its obligations to depositors and other creditors.

On August 4, 2023, the Board of the National Bank, guided by Article 75 of the Law of Ukraine "On Banks and Banking Activities", decided to classify JSC Ukrbudinvestbank as problematic.

The basis for such a decision was the bank's failure to comply without justified reasons with the decision of the National Bank of Ukraine to limit the implementation of certain types of operations.

From the day JSC Ukrbudinvestbank was assigned to the problematic category, the financial condition of the bank has significantly deteriorated, and the management and owners of significant participation have not taken appropriate measures to prevent the onset of insolvency.

Each depositor of JSC Ukrbudinvestbank will receive from the Deposit Guarantee Fund compensation in the full amount of the deposit, including interest accrued as of the end of the day preceding the day of the start of the procedure for withdrawing the bank from the market, except for the cases provided for in Part 4 of Article 26 of the Law of Ukraine "On the system of guaranteeing deposits of individuals".

In general, as of September 1, 2023, the possible amount of payments of the guaranteed amount to depositors of JSC Ukrbudinvestbank is UAH 606 million.

As Ukrainian News Agency earlier reported, according to the information of JSC Ukrbudinvestbank as of January 1, 2023, the key owner of the bank with a share of 74.93% of shares is the citizen of Ukraine Svitlana Demyanenko.