National Bank of Ukraine (NBU) initiates the introduction of a simplified procedure for banks and corporations mergers and acquisitions allowing them to speed up the “absorption” of financial institutions during the period of up to three months.
Director of Legal Department of NBU Viktor Novykov announced the news in Kyiv on Tuesday, Ukrinform reports .
“Now merger procedure takes a year … I think that at least we need to finish merger within the quarter,” he replied to a question posed by the first deputy chief of NBU Oleksandr Pysaruk as to how long it would take to absorb banks after making changes to optimize procedures on termination of joint stock companies activities as the result of their reorganization.
As a background information, the banking sector finds itself in a tense situation regarding its liquidity and significant uncertainty about the quality of the banks’ assets now. Deposits are securely made only in strong banks but small banks do not have a priori chance of survival because of their long-term reorganization procedure.
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