NBU declared Delta Bank insolvent
On March 2, 2015, the Board of the National Bank of Ukraine adopted a resolution on attributing PJSC Delta Bank to the category of insolvent. Also, Kreditprombank and Omega Bank are recognized as insolvent.
On March 2, 2015, the Board of the National Bank of Ukraine adopted a resolution on attributing PJSC Delta Bank to the category of insolvent.
As noted in the NBU, 94% of all depositors of Delta Bank JSC have deposits within the guaranteed by the Fund guaranteeing deposits of individuals amount of 200 thousand hryvnia, so that they will receive their deposits in full.
"The number of such depositors is 554 thousand. Some clients with significant amounts of deposits (about 6% of all depositors) will receive their deposits within the amount guaranteed by the Fund," the statement said.
The main reason for attributing Delta Bank to the category of insolvent was the failure of the bank owner to take timely, effective and sufficient measures to improve the financial condition of the bank and bring its activities in line with the requirements of Ukrainian legislation.
The main shareholder and the management of Delta Bank JSC have chosen a high-risk strategy of rapid growth through the acquisition of low-quality assets.
In addition, the aggressive development of the corporate business of Delta Bank, combined with the lack of sufficient experience in the selected segment, led to a significant deterioration in the quality of the loan portfolio and a reduction in the bank’s liquidity.
At the beginning of 2014, the NBU provided loans to the bank to maintain liquidity in the amount of 4.15 billion hryvnias, and after coordinating the bank’s capitalization program in September 2014 - a stabilization loan in the amount of 960 million hryvnias.
Such assistance of the National Bank temporarily improved the situation in the bank, but did not lead to a significant improvement in financial condition.
The anti-crisis actions of the shareholders and the management of the bank to remedy the situation were also insufficient, and the bank recapitalization plan was not implemented.
Also, the National Bank of Ukraine (NBU) declared Kreditprombank and Omega Bank (both are Kiev) insolvent. As reported on the website of the NBU, the relevant decisions are enshrined in the decisions of the National Bank No. 151 and No. 152 of March 2.