Board of the National Bank of Ukraine (NBU) has decided to place public joint-stock company Union Standard Bank (USB Bank) to the category of insolvent banks, the regulator said, referring to resolution No. 665 of October 2, 2015.
"Another bank with the non-transparent ownership structure is being removed from the market. We've finished the system purification stage, although any bank that violates legislation and carries out doubtful transactions must not work on the market," reads the report, citing director of the bank supervision department Kateryna Rozhkova.
NBU said that USB Bank was one of the banks, where the regulator toughened supervision due to the non-transparency of ownership structure. The central bank demanded to bring its structure in line with Ukrainian law.
"In September 2015, the bank was declared troubled bank due to the increase of information security risk. In the past several days USB started carrying out many transactions with cash. This operation could result in the worsening of the financial state of the bank," NBU said.
The regulator said that despite the ban, USB started signing agreements on comprehensive servicing of individuals, which would increase the burden on the Individuals' Deposit Guarantee Fund.
USB Bank (earlier Yekaterynoslavsky Commercial Bank) was founded in 1994.
The bank ranked 77th among 127 operating banks as of July 1, 2015, in terms of total assets worth UAH 799.4 m illion, according to the NBU.
