zn.ua
The National Bank of Ukraine (NBU) on October 2 decided to revoke the banking license and close down Ukraine's largest lender Delta Bank, in which a provisional administration of the Individuals' Deposit Guarantee Fund has been operating since March, according to a posting on the website of the National Bank of Ukraine.
"The NBU held comprehensive discussions with the Ukrainian Finance Ministry about bank restructuring and possible involvement of the state in its recapitalization, given the importance of Delta Bank in the country's banking system. However, due to its bad assets, the NBU was forced to declare the bank insolvent," a statement reads.
The regulator noted that including the bank into the category of insolvent banks was a result of a failure of the bank's management to take effective and adequate measures to improve the financial condition of the bank and bring its activity in line with the requirements of the Ukrainian legislation.
Read alsoWorld Bank expects only 100 banks in Ukraine in 2016 As UNIAN reported earlier, on September 23, the Individuals' Deposit Guarantee Fund proposed the NBU to liquidate Delta Bank.
On March 2, the National Bank of Ukraine declared insolvency of Ukraine's largest lender Delta Bank and introduced a provisional administration to the bank. In August, the Fund extended the period of authority of the provisional administration until October 2 inclusive.
Read alsoZhevaho' Bank defaults on $100 mln eurobondsThe Fund started paying refunds to depositors of Delta Bank on June 11, having preliminary estimated the amount of refunds at UAH 13.1 billion intended for than 500,000 depositors. The Fund continues tackling a problem of deposit fragmentations, and reported on about 4,500 deposits totaling UAH 1 billion subject to the court proceedings.
In July, the Pechersk District Court granted the prosecutor's office a permit to conduct unscheduled audits of the bank on charges of using UAH 4.1 billion in refinancing funds from the NBU to buy foreign currency worth USD 535.3 million and transferring them for the benefit of 12 related Ukrainian enterprises.
Delta Bank has been operating in Ukraine since 2006 and was one of the largest banks in terms of assets. Businessman Mykola Lagun holding 70.61% shares and Cargill Financial Services International Inc. (USA) with a 29.39% share stake are the bank's main shareholders.