Brokbusinessbank (Kyiv) and Real Bank (Kharkiv) have been declared insolvent due to the decline in their capital and delays with payments, reads a posting on the Web site of the National Bank of Ukraine (NBU).

"Putting public joint-stock company Brokbusinessbank and Real Bank in the category of insolvent banks was linked to the reduction of their regulatory capital to the minimum level and the non-fulfillment of their liabilities to depositors and other creditors during 10 working days in a row," reads the report.

As reported, temporary administrations were introduced at the banks from March 3 to June 2, 2014.

The NBU said that the decisions were made to support the enough capital and assets level of the above-mentioned banks, the detailed assessment of their financial state, brining their operations in line with the requirements of banking laws, restoration of solvency and liquidity and stabilization of their operation.

According to the report, individual depositors of the two banks can receive their funds under deposit agreements, the term of which has expired, and under bank account agreements. Payments will be settled for sums up to UAH 200,000.

"Now the issue of the systemic reform of the banking system is on the agenda. It cannot develop efficiently under the old rules. The NBU jointly with bank society are drawing up rules that will allow bankers to appreciate stability, clearness, and responsibility for their actions," reads the report.

Real Bank was founded in 1990 and Brokbusinessbank in 1991. As of the beginning of April 2013, none of their stockholders held more than 10% stakes in the banks' charter capitals.

Mass media connected Real Bank and Brokbusinessbank with Eastern European Fuel and Energy Company (VETEK) of Serhiy Kurchenko.

As the National Bank of Ukraine said, Brokbusinessbank ranked 16th with UAH 28.914 billion and Real bank ranked 47th with UAH 4.469 billion among the country's 180 operating banks as of January 1, 2014, in terms of overall assets.