Joint-Stock Commercial Bank Capital became insolvent as most of its assets remained in occupied territory in Donbas / Photo from uapress.info
PJSC Joint-Stock Commercial Bank Capital has become the 54th bank the National Bank of Ukraine (NBU) has declared insolvent as part of its efforts to clear up Ukraine's banking system, which began early in 2014.
The NBU adopted a resolution on including Bank Capital in the category of the insolvent banks on July 20.
According to a report published on the regulator's website, the bank was included in the list of troubled banks in January 2015 due to the poor quality of its assets and a reduction in highly liquid assets. In the following 180 days, until July 20, 2015, it was obliged to bring its operation in line with the requirements of Ukrainian laws.
However, the NBU reports, despite the efforts of the holder of a large stake in the bank, the bank has failed to stabilize its work.
"The cause behind this situation was the fact that the bulk of the bank's assets and part of its operational facilities were left in the temporarily occupied territory of Ukraine, which made it impossible either to secure the cash flow needed to meet demand from depositors and creditors, or ensure the appropriate level of risk management," the report reads.
Bank Capital was established in 1991. According to the bank, its largest shareholders as of April 1, 2015, were Ruslan Scherban, Violetta Epel and Tatiana Poliakova.