The National Bank classified Megabank as insolvent due to significant violations in terms of credit risk assessment, insider lending and non-fulfillment of the recapitalization plan.
This was reported by the NBU press service.
The NBU noted that the problems in the bankʼs activities were not caused by the imposition of martial law. They began long before the war. On February 3 this year, the NBU Board decided to classify JSC Megabank as problematic.
Among the reasons:
- significant violations of regulations of the NBU in terms of credit risk assessment,
- systematic lending to related parties,
- a significant amount of non-core assets on the balance sheet;
- non-fulfillment of the recapitalization/restructuring plan according to the results of the 2021 stress test.
The National Bank has repeatedly drawn the attention of the bankʼs management and its shareholders to the potential risks in the bankʼs activities.
"However, the shareholders of Megabank JSC did not provide financial support to the bank for timely and full fulfillment of obligations to the bankʼs clients and customer payments, as evidenced by numerous complaints that continued to come to the National Bank of Ukraine after the bank was classified as problematic.", — it is told in the message.
Each Megabank depositor will receive reimbursement in full, including interest accrued at the end of the day preceding the day of the bankʼs withdrawal from the market, except as provided in part four of Article 26 of the Law of Ukraine "On Deposit Guarantee System". In total, the possible amount of payments of the guaranteed amount to depositors as of May 21, 2022, is UAH 4,418.6 million.
- On June 2, the National Bank raised the discount rate from 10% to 25%. The agency explained that the goal of the move is to protect hryvnia incomes and savings, increase the attractiveness of hryvnia assets, reduce pressure in the foreign exchange market and strengthen the National Bankʼs ability to ensure exchange rate stability and curb inflation during the war.