NBU declares Ukrinbank insolvent

The decision is outlined in NBU resolution No. 934 of December 24, 2015. The NBU explained that operation of Ukrinbank was not in line with the requirements of banking laws and the central bank's acts, its indicators and financial state has worsened and the bank did not fulfill the plans to improve its financial state. The central bank said that 95.5% of depositors of Ukrinbank (53,000) will receive their deposits in full amount, as they do not exceed the sum of UAH 200,000 guaranteed by the Individuals' Deposit Guarantee Fund. The total payments will reach over UAH 1.9 billion. The NBU said that on October 1, 2015, the central bank decided to place Ukrinbank to the category of troubled banks as the bank failed to observe instant liquidity requirement in September. The NBU set a term for taking measures to bring the bank's operation in line with Ukrainian law. Ukrinbank registered a loan contract in the NBU to raise funds from a nonresident investor, although the money did not arrive. Despite of stirring up work on returning debts, including bad debts, and searching for investors, the bank failed to stop outflow of funds and stabilize its liquidity. "Thus, Ukrinbank remained unable to fulfill legal claims of creditors in full amount and in accordance with the issue terms, and its operation is not in line with the requirements of banking laws and NBU's acts," the central bank said. Ukrinbank was founded in 1989. Its largest shareholder on July 10, 2015 was Volodymyr Klymenko (71.1514%). Ukrinbank ranked 27th among 123 operating banks in the country on October 1, 2015 by total assets (UAH 5.832 billion), according to the NBU.