The National Bank of Ukraine (NBU) has placed bank Arcada (Kyiv), which as of July 1, in terms of total assets ranked 45th (Hr 1.902 billion) among 75 operating banks in the country, on the list of insolvent banks, the press service of the central bank said on August 25.
The decision was approved by NBU Board No. 541-rsh/BT dated August 25.
“The Board of the National Bank has decided to classify JSC commercial bank Arkada as insolvent due to the reduction of capital ratios to less than one third of the minimum established level. The decision was made in order to protect the interests of depositors and creditors of the bank,” the NBU said in the statement.
The bank’s capital fell below the regulatory level and became negative due to the loss of the main asset – the main office building and land at 3, Olhynska Street in Kyiv.
According to the report, the bank provided the property as collateral for a loan raised by a developer associated with the bank, and lost it due to late service of the debt by the developer.
According to the NBU, at the time of the loan agreement, the estimated value of the building exceeded Hr 620 million (almost 27% of all bank assets).
“NBU, having studied the materials on the re-registration of ownership of the facility (pledge agreement, loan agreement and annexes to it), appealed to the National Police of Ukraine with a statement about the illegal actions of bank officials and a request to preserve the property,” the regulator said.
The National Bank said that more than 90% of depositors of bank Arcada (more than 5,000 people) will receive deposits in full, as their size does not exceed the amount guaranteed by the Deposit Guarantee Fund in the amount of Hr 200,000. Larger deposits will be reimbursed within the specified amount. In total, the Deposit Guarantee Fund will ensure the payment of a guaranteed amount of Hr 285 million.
The NBU said that the removal of the financial institution from the market is not associated with a delay in the commissioning of the houses of the Eureka and Patriotyka residential complexes.
