The NBU and the Finance Ministry has decided to withdraw from the market «Rodovid Bank»

The national Bank and the Ministry of Finance decided to abandon the use of PJSC «Rodovid Bank», which since 2011 has served as a remedial Bank. This is stated in the message of the National Bank.

According to the NBU resolution No. 107, «Rodovid Bank» declared insolvent and transferred to the Fund of guaranteeing the deposits of individuals.

In NBU reminded that «Rodovid Bank» was capitalized by the government in 2009-2011, and since 2011 the Bank worked in the status of remediation.

«It was assumed that the objective of sanation Bank will be conducting within 5 years of effective work with assets of public sector banks and the return of state funds allocated for capitalization of the Bank», — stated in the message.

«But the task was not achieved for the following reasons: first, at the legislative level has not been established mechanisms for the transfer and implementation of bad assets in the public sector that is necessary for the efficient operation of sanation of the Bank, secondly, as a remedial Bank «Rodovid Bank» showed low performance with their assets», — said the NBU.

It is also noted that during the remedial activities of the Bank as its income has covered only the costs the state had no dividends from the Bank.

«Given the loss-making operations and low efficiency of operations with distressed assets (92% of total Bank’s assets) and existing non-performing loans of the Bank to creditors, primarily the National Bank, «Rodovid Bank» would have needed financial support from the state», — said the press service.

«Rodovid Bank» (Kyiv) has operated in Ukraine since 1990 and is included in the group of large banks. In 2009, the Bank was capitalized with participation of the government 12.3 billion, resulting in the Ministry of Finance of Ukraine became the owner of 99,9907% stake in the Bank.

The government has decided to establish on the basis of «Rodovid Bank» sanation Bank in 2011 to work with state assets and recapitalized with the participation of the state banks.

The NBU and the Finance Ministry has decided to withdraw from the market «Rodovid Bank» 26.02.2016

Февраль 26th, 2016 by
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