Finance and Credit Bank declared insolvent / Photo from UNIAN
The National Bank of Ukraine (NBU) has declared insolvent Finance and Credit Bank after a long work on its financial restructuring, which resulted in the shareholder has not fulfilled its obligations, according to the NBU's statement.
"On August 17, after seven months of being at the stage of a troubled bank, it switched to normal operation. The NBU continued to monitor the situation in the bank on a daily basis. When the shareholder did not fulfill its obligations, we responded quickly. Today, the bank is declared insolvent and transferred to the Individual Deposit Guarantee Fund," NBU Governor Valeria Gontareva said.
According to her, the lion's share of bank assets was connected with the lending business of a shareholder, and when it was high time to pay off debt and sell assets, the shareholder failed to do it within defined timeframe.
Read alsoNBU to liquidate Ukrgazprombank"I want to assure you that this bank is not a system, and its assignment to the category of insolvent poses no threat to the stability of the banking sector of the country," Gontareva said.
According to the NBU, 93.2% or 234,000 bank depositors will get their deposits in full, because their volume does not exceed the guaranteed amount of UAH 200,000, while the customers with large amounts of deposits will get them within the guaranteed sum.
It is also reported that the NBU tried to help the bank, providing it with two stabilization loans – UAH 700 million in February and UAH 750 million in June of this year. At the same time, the regulator notes that the loans were used only for the payment of deposits of physical persons in the amount of up to UAH 200,000.