Ukraine's National Bank declares Artem-Bank insolvent

Ukraine's National Bank declares Artem-Bank insolventThe National Bank of Ukraine (NBU) has declared Artem-Bank (Kyiv), which in late September 2016 ranked 69th in terms of assets (UAH 528.84 million) among 101 Ukrainian banks, insolvent, NBU Deputy Head Yekaterina Rozhkova has said.

"Temporary administration was introduced in the bank yesterday, on November 15," she said at a press conference in Kyiv.

The corresponding decision was stipulated in NBU resolution No. 416-rsh/BT dated November 15.

According to information from the National Bank, distributed at the press conference, 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.

Also, due to the 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.
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