Central Bank designates Bank Financial Initiative as insolvent

11:57, 24.06.2015 1 min read

The National Bank of Ukraine (NBU) has designated Bank Financial Initiative, which belongs to the top 20 Ukrainian banks, as insolvent.

This is stipulated in NBU resolution No. 408 of June 23.

"All the efforts to achieve stabilization, in particular, additional capitalization by a major stakeholder, have failed to stop withdrawal of funds, stabilize liquidity and restore solvency amid the current financial crisis," the NBU said.

The NBU said that the Individual Deposit Guarantee Fund will pay compensation to 59,000 depositors whose deposits are worth up to UAH 200,000, which is 92% of the insolvent bank's depositors, and the total sum of compensation has been estimated at UAH 3.7 billion.

Interim administration at the bank was introduced as of June 24 for three months.

Bank Financial Initiative was established in 2005. Its sole shareholder as of January 2015 was Invest-Service LLC. The main beneficiary is Oleh Bakhmatiuk.

Bank Financial Initiative ranked 16th among 133 Ukrainian banks on April 1, 2015 by total assets (UAH 19.18 billion), according to the NBU.