As it is reported on NBU site with reference to Resolution №374, coming into force from August 23, the bank can be declared insolvent, if the procedure of formation and storage of obligatory reserves is not observed, and if it was established that the conclusion of agreements with associated persons under non-market terms led to the fact that the bank did not perform prudential regulations or incurred losses.
This resolution also changed the calculation of certain fines for non-provision of statistical reporting, violation of the procedure of formation and storage of obligatory reserves, provision of unreliable information or non-provision of the information on the ownership structure.
In addition, according to NBU, for improving efficiency of the special supervision over bank activities the resolution improves certain norms, regulating the activities of the National Bank of Ukraine.
It should be reminded that during the cleaning process of the banking system for 2014 and 2015 the National Bank declared 63 banks insolvent, which went into administration of the Deposit Insurance Fund. Since the beginning of this year, NBU decided to put other 14 financial institutions out of market.
According to the current legislation, the National Bank can declare such bank insolvent if the bank does not fulfill the regulator’s statutory requirements.
Source: Arbitrazhnik.
