The National Bank and the Ministry of Finance have decided to refuse from using PSJC “Rodovid”, which fulfilled the function of the remedial bank since 2011, the NBU message says.

According to NBU resolution №107, “Rodovid Bank” was declared insolvent and transferred to the Individual Deposit Insurance Fund.

NBU reminded that “Rodovid Bank” was state-funded in 2009-2011, and since 2011 the bank worked as the remedial bank.

“It was expected that the purpose of activities of the remedial bank was to conduct the efficient work with assets of state banks and return of state funds, aimed at the capital increase of the bank, within 5 years”, the message says.

“However, the assigned task was not achieved for the following reasons: firstly, the mechanisms for transfer and realization of toxic assets of the state banks, which is necessary for the efficient work of remedial bank, were not created on the legislative level, secondly, as the remedial bank “Rodovid Bank” showed low efficiency of the work with its own assets”, NBU stated.

It is also noted that during the activities of the bank as remedial, its revenues covered only expenses, the state did not have any dividends from the bank.

“Taking into consideration the loss-making activities and low efficiency of the work with toxic assets (92% from total assets of the bank) and the existing  arrears of the banks to lenders, first of all, the National Bank, in future “Rodovid Bank” would need the financial support from state”, the press-service emphasized.

“Rodovid Bank” (Kyiv) operates on the Ukrainian market since 1990 and belongs to the group of major banks. In 2009 the bank’s capital was increased with participation of state for UAH 12.3 billion, as the result of which the Ministry of Finance of Ukraine became the owner of 99.9907% shares of the bank.

The government took the decision to create the remedial bank on the basis of “Rodovid Bank” in 2011 for conducting work with assets of state and recapitalized banks.