The Individuals' Deposit Guarantee Fund has introduced temporary administration at Bank Nadra (Kyiv), sources on the financial market have told Interfax-Ukraine on Friday.

The decision to declare the bank as insolvent is stipulated in NBU resolution No. 83 of February 3: the main reason is the not enough capitalization of the bank under the requirements of stress tests and the bank's operation not being in line with Ukrainian law.

According to a post on the Deposit Guarantee Fund website, temporary administration was introduced for three months – until May 5, 2015. Iryna Striukova has been appointed as temporary administrator.

According to a post on the National Bank of Ukraine (NBU) website, 99% of depositors at the bank have deposits within the guaranteed sum (UAH 200,000).

"They will receive their deposits in full," NBU said.

According to the report, total payments to Bank Nadra's depositors will be over UAH 3.6 billion.

The NBU said that the central bank had no grounds to consider the bank as solvent, as expert analysis of its plans confirmed continued losses in the future.

The possibility of realizing capitalization plans was dependent on the restructuring of beneficial credits issued by the NBU for ten years.

"Shareholders in Bank Nadra did not confirm their readiness to quickly support the financial institution, including to pay debts from the previous shareholder, which resulted in the further worsening of financial indicators in the bank's operation and the impossibility of fulfilling liabilities to depositors and other creditors on time," reads the report.

"We confirm our plans to leave only reliable and transparent banks, which function efficiently and stably fulfill liabilities, on the market. This is the obligatory condition for restoring the country's economy, restoring its growth," reads the report, citing First Deputy NBU Governor Oleksandr Pysaruk.

Bank Nadra, founded in 1993, and is part of Group DF owned by Dmytro Firtash.

Bank Nadra ranked 11th among 166 operating banks as of October 1, 2014, in terms of total assets it is worth UAH 35.87 billion, according to the National Bank of Ukraine.