In February 2016, the Cabinet approved a strategy for the development of state-owned banks / Photo from NBU
The National Bank of Ukraine (NBU) has decided to declare the State Land Bank insolvent.
In March 2016, the State Land Bank was included in the group of problem banks due to the conflict of interest at the banking institution, and till date it has not met the regulator's requirements to remove the infringements. What is more, the situation is getting worse, the NBU stated on its website.
"Since the bank's operations have not been streamlined in line with the NBU's requirements during the period determined by law, the regulator has decided to add the bank to the group of insolvent banks," the NBU said.
Read alsoNBU plans to complete banking diagnostics by mid-2017The decision will not put any pressure on the Deposit Guarantee Fund, as there were no individual deposits at the bank.
UNIAN memo. The State Land Bank was created by the Cabinet in 2012 with plots of land and property rights of ownership of land. It is a wholly-owned state bank and is managed by the Finance Ministry.
The bank began operations in October 2013, but the inventory and assessment of farm land did not take place due to the lack of budget funds, and the bank's work came to a virtual halt.
In February 2016, the Cabinet approved a strategy for the development of state-owned banks. The strategy foresees the withdrawal of the state from non-essential state banks, including the State Land Bank, by means of sale through privatization or closure by the end of 2017.
Svitlana Skosyrska is chairperson of the State Land Bank's board. She was elected in April 2013 and her tenure continues until April 15, 2018. Prior to this, she was chairperson of Bank Kyiv's board for two years.
The State Land Bank's supervisory board said in February 2016 it had not accepted Skosyrska's letter of resignation and she would continue performing her duties as the head of the bank's board.