The National Bank of Ukraine classified Bank Sich as insolvent.
This is reported in the press service of the National Bank.
This decision was made in accordance with Article 76 of the Law of Ukraine "On Banks and Banking Activity" due to the bankʼs failure to fulfill its obligations to the National Bank for refinancing loans due to lack of funds.
The National Bank also reports that Bank Sich had a poor corporate governance system and an inefficient business model. It carried out risky operations, which was confirmed by the loss-making activity and negative dynamics of the capital standards of this bank.
The NBU emphasized that declaring a bank insolvent does not affect the stability of the banking sector of Ukraine in any way. As of August 1, 2022, Bank Sichʼs share was only 0.3% of the net assets of solvent banks.
It is also noted that each depositor of this bank will receive from the Deposit Guarantee Fund of natural persons compensation in the full amount of the deposit, including interest accrued as of the end of the day preceding the day of the start of the procedure for withdrawing the bank from the market, except for the cases provided for in part four of Article 26 of the Law of Ukraine "On the system of guaranteeing deposits of individuals".
As of July 1, 2022, the possible amount of payments of the guaranteed amount to depositors is UAH 1,229.7 million.