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NBU recognized Delta Bank as insolvent

НБУ признал Дельта Банк неплатежеспособным

On March 2, 2015, the Board of the National Bank of Ukraine adopted a resolution on assigning 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 assigning 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 for guaranteeing deposits of individuals amounting to 200 thousand hryvnia, so that they will receive their deposits in full.

"The number of such depositors is 554 thousand. Part of customers with significant amounts of deposits (about 6% of the total number of all investors) will receive their deposits within the amount guaranteed by the Fund," the report said.

The main reason for classifying Delta Bank as insolvent was the failure by the bank's owner of timely, effective and sufficient measures to improve the financial condition of the bank and bring the activity in line with the requirements of Ukrainian legislation.

The main shareholder and management of Delta Bank JSC chose a high-risk strategy for rapid growth through the acquisition of low-quality assets.

In addition, the aggressive development of Delta Bank's corporate business, coupled with a 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.

In early 2014, the NBU granted loans to the bank to maintain liquidity in the amount of UAH 4.15 billion, and after agreeing the bank's capitalization program in September 2014 - a stabilization loan amounting to 960 million hryvnia.

Such assistance of the National Bank temporarily improved the situation in the bank, but did not lead to a significant improvement in the financial situation.

The anti-crisis actions of shareholders and the bank's management on correcting the situation were also inadequate, and the bank's recapitalization plan was not implemented.

Also, the National Bank of Ukraine (NBU) recognized Kreditprombank and Omega Bank (both - Kiev) as insolvent. As reported on the website of the National Bank of Ukraine, the relevant decisions are fixed by the resolutions of the National Bank No. 151 and No. 152 of March 2.