The state will be able to take part in withdrawing an insolvent bank from the market even if an authorized person of the Deposit Guarantee Fund has not ensured a reduction in the bank’s charter capital to Hr 1 (one hryvnia).
Respective amendments were introduced to Cabinet resolution No. 632 dated Nov. 19, 2014, on the regulations of the acquisition of bank shares in exchange for government domestic loan bonds. The new changes are stipulated in Cabinet resolution No. 960 dated Dec. 16, posted on the Cabinet’s website.
Thus, the condition for the state’s participation in the withdrawal of an involvement bank from the market is meeting one of the following criteria: 1. The share of a bank’s total assets is 2 percent or more of the total assets of the Ukrainian banking sector and/or bank deposits of individuals and legal entities account for 2 percent or more of total deposits of individuals and legal entities in all the banks of Ukraine. 2. The share of the state in a bank’s charter capital exceeds 75 percent.
