The decision was due to the lack of effective measures to improve the bank’s financial condition, the regulator explained.
The National Bank of Ukraine acknowledges the problems at JSC Ukrainian Construction and Investment Bank (Ukrstroyinvestbank, Kyiv). The regulator announced this on Thursday, September 7.
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“Since the day Ukrstroyinvestbank was classified as problematic (August 4, – ed.), its financial position has deteriorated significantly, and the management and owners of significant influence have not taken appropriate measures to avoid the onset of insolvency,” the statement said.
It is said that the basis of identifying the bank as problematic is the failure to implement, without reasonable cause, the decision of the National Bank to limit the implementation of certain types of operations.
The regulator noted that the financial institution’s share reached 0.04% of the assets of solvent banks in the country as of September 1, so its inclusion in the insolvent category does not affect the stability of Ukraine’s banking sector.
The NBU recalled that during martial law, each depositor of Ukrstroyinvestbank will receive compensation from the Deposit Guarantee Fund for individuals for the full amount of the deposit, including interest accrued at the end of the day before the day of the procedure for withdrawal of the bank from the market began. In general, the possible amount of payments of the guaranteed amount to depositors of this financial institution on September 1, 2023 amounted to UAH 606million.
Ukrstroyinvestbank was founded in 2004. As of July 1, 2023, in terms of total assets (UAH 2.47 billion), it was ranked 45th out of 65 Ukrainian banks operating in the country. Its net profit for the first half of this year was UAH 19.07 million.
According to information on the website of the financial institution, its largest shareholders are Svetlana Demyanenko (74.93%), Yulia Podgornits and Lyudmila Minevich – 9.90% each, and Natalya Shishova – 5.27%.
We remind you that on August 1, the National Bank revoked the license and liquidated Concord Bank for systematic violations of legal requirements in the field of preventing and combating the legalization (laundering) of proceeds from crime.
Concord was the seventh bank to go into liquidation during the Russian onslaught.
Source: korrespondent
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