Central bank decides to liquidate Ukrcomunbank in militant-held Luhansk

13:27, 16.09.2015 1 min read

The National Bank of Ukraine (NBU) decided on September 14 to cancel the banking license of PJSC Ukrcomunbank, which is located in the militant-held city of Luhansk, and the bank will be liquidated, the NBU has announced on its website.

"The NBU has passed resolution No. 604 to liquidate the bank as was proposed by the Individuals' Deposit Guarantee Fund. The reason behind the decision is the fact that the bank's owners have not taken measures to restore the bank's operations and register it in Ukrainian-controlled territory. What is more, in May 2015 the NBU designated the bank as insolvent because it had failed to meet its obligations before its creditors and depositors," the bank said.

As reported, the Individuals' Deposit Guarantee Fund introduced temporary administration at Ukrcomunbank for three months from May 13 to August 12. Then, on August 10, temporary administration was extended until September 12.

Ukrcomunbank was founded in 1993. On April 1, 2014 the bank had no shareholders who held a stake larger than 10%.