National Bank of Ukraine / Photo from REUTERS
The National Bank of Ukraine (NBU) has decided to revoke JSC Arcada (Arkada) Bank's banking license, which will be followed by the closure of the bank.
Read alsoThe Deposit Guarantee Fund says some banks may go bankrupt in 2020"The National Bank of Ukraine (NBU), as was proposed by the Deposit Guarantee Fund, passed Decision No. 601 on withdrawal of the banking license and liquidation of JSB ARCADA JSC," the regulator's press service said on September 25.
Background
- The NBU Board designated Arcada Bank as an insolvent bank over a decrease in its capital ratios to less than a third of the minimum established level.
- Ukraine's Deposit Guarantee Fund on August 26 launched the procedure for withdrawing Arcada Bank from the market.
- Arcada Bank and a developing firm have suspended the construction of apartment blocks being built for money invested by individuals and legal entities. According to Kyiv City State Administration, about 13,000 people invested in the construction of the said projects. The total number of individuals affected by the halt to the construction, along with their family members, is over 30,000.
- The Deposit Guarantee Fund started making payments to depositors of the insolvent bank on September 11, 2020.
- Kyiv-based Arcada Bank has been operating on the Ukrainian market since 1993. It belonged to the group of small-sized banks.