News Column

National Bank of Ukraine declares CB ACTIVE-BANK, PJSC insolvent

September 5, 2014

ENP Newswire - 05 September 2014

Release date- 03092014 - Since April this year, the financial position of COMMERCIAL BANK 'ACTIVE-BANK', PUBLIC JOINT STOCK COMPANY (hereinafter - the Bank) has deteriorated.

Asset-side operations were carried out without adequate assessment of their riskiness and quality of security, such transactions failed to secure timely and full repayment to depositors and creditors of the bank.

Due to the inherent risks of the Bank activities, including credit risk, risks of liquidity, reputation, violation of prudential requirements of the National Bank of Ukraine (hereinafter - the National Bank), as well as receipt of complaints from customers about the Bank's failure to perform obligations, unscheduled inspection was initiated and conducted as of 22.05.2014.

Inspection has established the Bank's violation of requirements of NBU regulations and has confirmed facts of the Bank's default with respect to depositors and other creditors, which led to placement of the Bank into the category of troubled banks in June 2014 and appointment of the supervisor - employee of the National Bank.

As required by the banking legislation, a timeframe was set for the Bank to take measures to bring its operations into compliance with the law.

However, owners of the qualifying holding in the Bank failed to take urgent actions to improve liquidity of the bank. Planned activities on financial support through proceeds from shareholders and from release of assets are not enough to restore its solvency.

Bank executives (Chairman of the Board, three deputies thereof and chief accountant) are removed from the relevant positions.

Given the above, the lack of prospects for resumption of the Bank activities, in order to protect the interests of its depositors and other creditors, in conformity with Articles 7, 15, 55 of the Law of Ukraine 'On the National Bank of Ukraine', Articles 67, 73, 75, 76 of the Law of Ukraine 'On Banks and Banking ' by resolution of the Board of the National Bank No. 545 of 02.09.2014 it was resolved to declare COMMERCIAL BANK 'ACTIVE-BANK', Public Joint Stock Company insolvent.

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Source: ENP Newswire

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