Another Ukrainian bank to close

They decided on the liquidation of the bank at the bank's extraordinary general meeting in connection with conclusions by the National Bank of Ukraine (NBU) that the structure of the bank's ownership is not transparent, Ekonomichna Pravda wrote.

The shareholders decided to launch the liquidation procedure at the bank and instructed Chairperson of the bank's board Olha Zhukovets to prepare a package of documents to be submitted to the NBU for the consent.

As was reported earlier, Valeriy Makarenko holds 14.24% of Bank Narodny Kapital's shares. In April 2016, the NBU did not let seven individuals buy 36.5% of the bank's shares.

Earlier this year, Odesa-based Finbank announced its shareholders' plans to close the bank. They will meet to consider the relevant issue on February 1.

In 2016, the National Bank of Ukraine (NBU) permitted the liquidation of Finance Bank and Investment Trust Bank on the initiative of their owners.

As UNIAN reported earlier, the NBU issued resolution No. 58 to oblige banks to boost capital to UAH 200 million by July 11, 2017, further to UAH 300 million by July 11, 2018, and to UAH 400 million by July 11, 2019. What is more, their capital should be increased to UAH 450 million by July 11, 2020, and to UAH 500 million by July 11, 2024.

Read alsoNBU plans to complete banking diagnostics by mid-2017Bankers predict that such NBU requirements can become a daunting task for some small-sized banks, which will accelerate mergers and closures in the Ukrainian banking sector.

As part of the NBU's efforts to clean up the country's banking system 2014-2017, the Central Bank decided on the withdrawal of 88 banks from the market. Of them, 33 banks became insolvent in 2014, another 33 banks in 2015, and 21 in 2016 and one in 2017. The regulator alone decided on the liquidation of 81 of these banks. However, only one bank resumed operations after the sale to an investor.