The National Bank of Ukraine (NBU) has announced that public joint-stock company Ukrainian Professional Bank (UPB, Kyiv) is insolvent, the regulator has reported on its website.

According to the NBU, the decision was made on May 28.

"With the purpose of protecting depositors and other creditors… the board of the NBU had to make the decision to put UPB in the category of insolvent banks," reads the report.

According to the report, UPB carried out risky operations that threatened the interests of depositors and other creditors of the bank, in particular, by worsening the quality of assets, depending on interbank resources, a there being a general lack of liquidity. The NBU has appointed a curator to the bank.

The regulator said that the bank's financial readjustment plan did not include measures to improve its liquidity and its shareholders did not take into account the NBU's remarks on the urgent financial readjustment of the bank. The financial state of the bank subsequently worsened. The NBU started receiving many claims on the non-fulfillment of the bank's liabilities to its clients or the delayed fulfillment of liabilities.

According to Ukrainian law, the bank that was put in the category of insolvent banks is under the jurisdiction of the Individuals' Deposit Guarantee Fund, which introduced temporary administration at the bank.

Ukrainian Professional Bank was founded in 1992. Its largest shareholder as of April 1, 2015 was Ukrainian Investment-Financial Alliance (95.3902%).

UPB ranked 36th among 133 operating banks as of April 1, 2015, in terms of total assets worth UAH 4.55 billion, according to the NBU.