The National Bank of Ukraine (NBU) has decided to withdraw the banking license of Artem-Bank (Kyiv) under a proposal of the Individuals Deposit Guarantee Fund and liquidate the bank, the regulator has reported on its website.

Decision No. 492-rsh was made on December 15, 2016.

As reported, the Deposit Guarantee Fund introduced temporary administration to the bank on November 16 for the period until December 15.

The NBU declared Artem-Bank insolvent on November 15.

The NBU said that problems with servicing the bank's loan portfolio in the amount of UAH 385 million, which was 80% non-performing, led to the loss of its liquidity from the beginning of November. As a result, the bank failed to fulfill its obligations to customers.

As of November 8, 2016 the total amount of Artem-Bank's outstanding transactions for customers exceeded UAH 20.2 million, or 5.3% of its liabilities.

In addition, due to additional formation of reserves as of October 1 the bank's capital became negative (as of October 25 "minus" UAH 185.2 million), which led to the violation of prudential regulations and limits of the open currency position.

The NBU said that 94% of depositors (2,411) of Artem-Bank will receive their deposits in full from the Deposit Guarantee Fund.

The total guaranteed sum to be refunded as of November 8 was UAH 177.2 million.

The bank ranked 82nd among 100 operating banks as of October 1, 2016, in terms of total assets worth UAH 318.5 million, according to the NBU.