The Individuals' Deposit Guarantee Fund has started the liquidation procedure of Bank Kyiv after the transfer of its assets and liabilities to state-run Ukrgasbank, the fund said on its website.

"Under a resolution of the Board of the NBU [National Bank of Ukraine] No. 411 of June 24, 2015 on revoking the banking license of insolvent Bank Kyiv and liquidating it, the executive directorate of the fund issued order No. 122 on the start of the liquidation procedure of Bank Kyiv," reads the report.

The liquidation procedure will last for one year – until June 24, 2016. Oleh Kichuk has been appointed as bank liquidator.

The fund said that Ukrgasbank received assets worth UAH 740.1 million and liabilities worth UAH 1.379 billion. The fund saved UAH 346.7 million from the transfer of Bank Kyiv's assets and liabilities to Ukrgasbank, as all creditors and depositors of the insolvent bank, including individuals and companies, became clients of Ukrgasbank.

The fund said that all the liabilities to depositors of Bank Kyiv in foreign currency were transferred to Ukrgasbank in the national currency at the official exchange rate of the NBU on the day when temporary administration was introduced at the bank, and other conditions of the agreements were left unchanged.

As reported, on June 25 government-controlled Ukrgasbank (Kyiv) finished the procedure of joining the assets and liabilities of Bank Kyiv.

The special procedure was applied to Bank Kyiv which will allow the bank to be removed from the market and its deposits will be transferred to another bank with a state owned stake – Ukrgasbank.

Bank Kyiv was established in 1993. The bank was transferred to the control of the state during the implementation of an anti-crisis program to recapitalize crisis-hit banks. The Finance Ministry's stake in the bank as of early January 2015 was 99.9369%.

Bank Kyiv ranked 67th among 158 operating banks as of January 1, 2015, in terms of total assets worth UAH 1.485 billion, according to the NBU.