The National Bank of Ukraine (NBU) has adopted a decision to declare Trust Bank insolvent in connection with the violation of the regulator`s ban to attract deposits by this bank, established on July 2 due to the problematic status of the financial institution, the NBU reported on its website, with reference to the decision of the Board of December 6.
”Late November, despite the NBU ban, the bank resumed attracting deposits at inflated interest rates. In accordance with the Law of Ukraine ”On Banks and Banking Activity,” the National Bank shall decide on referring the bank to the category of insolvent ones in case the bank fails to comply with the decision of the National Bank of Ukraine,” the report says.
According to the NBU, the deteriorating financial condition of the Trust Bank was of a systemic nature. A considerable amount of bank loans was granted in the territories where the Anti-Terrorist Operation is now being conducted. Due to lack of payments on such loans, the bank`s financial condition has deteriorated significantly, the capital became negative – minus UAH 135 million as of December 1, which led to the violation of economic regulations.
The National Bank also noted that the capitalization program developed by the Trust Bank did not contain confirmation of the possibility of realization of planned measures to improve the financial status in a timely manner, and guarantee letters of shareholders (investors) were absent.
However, as noted in the report, the bank`s shareholder held talks with a number of investors on the possibility of the sale of the financial institution, but the regulator did not receive official documents for approval to the acquisition of a significant participation in the Trust Bank.
According to the National Bank, Ukrainian businessman Volodymyr Avramenko and a citizen of the Russian Federation Sergey Belyaev are the owners of a substantial participation in the bank. At the same time, the National Bank said that in mid-2015 the bank`s shareholders were citizens of the Russian Federation Ilya Yurov, Nikolay Fetisov, and Sergey Belyaev.
It is also reported that 96% of depositors of the Trust Bank will get their deposits in full, because their size does not exceed UAH 200,000 (a sum guaranteed by the Deposit Guarantee Fund). Customers with large amounts of deposits will receive payments within the amount guaranteed by fund. The NBU estimated the total guaranteed amount of compensation at UAH 552 million.