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The Board of the National Bank of Ukraine (NBU) has decided to include PJSC Sofiyevsky Bank in the category of insolvent banks in accordance with NBU decision No. 916, published on the website of the regulator.
It is reported that the bank was initially located in Donetsk. With the outbreak of hostilities in eastern Ukraine, the bank was transferred to Kyiv, however, the bank's loan portfolio was totally concentrated in the area of the Anti-Terrorist Operation. Due to the events in the country's east, the servicing of the loan portfolio worsened signficantly, which led to liquidity problems. Bank's shareholders and its management made attempts to save the bank, searching for an investor, the NBU press service reported citing Director of the NBU Bank Supervision Department Kateryna Rozhkova.
Searching for an alternative source of income, the bank focused on opening offices to carry out small-volume exchange transactions, which proved to be of little success taking into account the liquidity deficit, according to the report.
The bank eventually became insolvent.
Read alsoWorld Bank expects only 100 banks in Ukraine in 2016 As UNIAN reported earlier, the World Bank expects that the number of Ukrainian banks will reduce next year to 100 from 122 currently functioning banks, as a result of measures taken by the Ukrainian authorities to improve the sustainability and efficiency of the banking system.
As part of the purification process of the banking system, which started in 2014, the NBU declared insolvent 60 financial institutions, reducing their number from 182 to 122.