The situation in the Ukrainian banking system, including the declaration of bank Khreschatyk insolvent, is evidence of the absence of effective banking supervision by the National Bank of Ukraine (NBU), the creation of unequal conditions for the banking market players. It results in destruction of banks, the Ukrainian Credit-Banking Union (UCBU) has said.

"A lack of predictability, prudence and the selective policy of the NBU in the regulation and oversight matters results in the destruction of banks, the loss of funds by the public and business. The NBU's abrupt about-face on the rules and narrowing the additional capitalization schedules have resulted in a conflict between the regulator and shareholders in bank Khreschatyk," the association said.

The association said that earlier the NBU did not provide a stabilization credit to the bank to support liquidity, while other banks, tightly associated with representatives of power, use the regulator's support without limits.

The NBU on April 5 recognized Bank Khreschatyk (Kyiv) insolvent.

Bank Khreschatyk was founded in 1993. The bank ranked 18th among 123 operating banks as of October 1, 2015, in terms of total assets worth UAH 10.09 billion, according to the NBU.