NBU recognized Bank Mikhailovsky” insolvent

НБУ признал "Банк Михайловский" неплатежеспособным

The Board of the National Bank of Ukraine adopted a decision No. 14 “On placing Public joint stock company “Bank Mikhailovsky” insolvent” may 23. This reports the press service of the regulator.

PJSC “Bank Mikhailovsky” was recognized as problematic 23 Dec 2015 due to risky activities. From the moment the national Bank has been working with shareholder and Bank’s management to resolve the situation.

“May 20, 2016 Chairman of the Board of PJSC “Bank Mikhailovsky” Igor Doroshenko said that he had left the position. On the same day the Bank said that for technical reasons it is not working the system “Bank’s operation day”. The system was not working all day, making it impossible to access the curator to the operational data. This system only late in the evening of 20 may. A curator, after receiving the access, he saw a large number of transfers of physical persons ‘ deposits of the Finance company associated with the Bank, on the Bank’s balance sheet. This increased stress on the Deposit guarantee Fund of individuals (fgvfl) from 1.6 million USD to 2.6 billion USD”, – said Deputy Chairman of the National Bank Ekaterina Rozhkova.

Upon detection of such operations taking place in the troubled Bank, the national Bank according to the law of Ukraine “On banks and banking activity” is obliged to make a decision about reference of Bank to category insolvent.

For Monday, may 23, PJSC “Bank Mikhailovsky” resisted the curator of the National Bank in the access to information which would confirm such operations. Because of the need to obtain solid evidence for the recognition of the Bank insolvent, the decision was taken in the evening. Despite the adoption of the relevant decision at the end of the day Monday, the national Bank announced the Deposit guarantee Fund about the situation on Friday, may 20. The DGF employees arrived at the Bank on Monday morning to implement additional control.

During this time the Bank’s correspondent account has been blocked, making it impossible to withdraw funds beyond PJSC “Michael”. At the same time, the curator had received information about a number of internal netting of transactions. At the moment this information is verified. By results of check the national Bank intends to address in law enforcement bodies, about bringing the Bank into bankruptcy. The additional stress on the Deposit guarantee Fund in the amount of 1 billion USD, which appeared may 20, 2016, will be challenged.

As of 23 may 2016, 100% of its shares belong to LLC “Acasian”, 92.5% of which is owned by Viktor Polishchuk, 3,9% – to Igor Doroshenko and 3% – to Victor Erasova. The national Bank has not received the documents for the merger of OJSC “Bank Mikhaylovsky” to another institution.

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