The Board of the National Bank of Ukraine (NBU) has decided to classify the Joint Stock Company "Commercial Investment Bank" (Kominvestbank) as insolvent, as reported on the NBU website on Thursday.
It is noted that the financial institution held a market share of 0.04% of all assets of insolvent banks as of November 1, 2024. Additionally, the bank ranks 52nd in terms of total assets (1.43 billion UAH) among 62 Ukrainian banks.
“Consequently, the classification of Joint Stock Company 'Kominvestbank' as insolvent will not affect the stability of Ukraine's banking sector. This decision was made due to Kominvestbank's failure to align its operations with legal requirements, including regulatory acts of the National Bank,” the Central Bank explained.
It is specified that on August 8, 2024, the NBU Board, guided by Article 75 of the Law of Ukraine "On Banks and Banking Activities," decided to classify Kominvestbank as problematic.
The basis for this decision was the establishment of the fact that the bank was engaged in risky activities that posed a threat to the interests of its depositors or other creditors, due to inadequate organization of the internal control system. This, considering the risk management system and insufficient income, creates a risk of future reduction in the bank's regulatory capital and violations of the prudential capital standards set by the National Bank. Furthermore, there were identified instances of systematic provision and publication of unreliable information and reporting by the bank to conceal its actual financial position.
The National Bank also established that since the classification of Kominvestbank as problematic, the bank has continued to engage in risky activities and systematically provided and published unreliable information and reporting in order to conceal its real financial condition, while the management and owners have not taken appropriate measures to prevent the bank's classification as insolvent.
It is emphasized that each depositor of Kominvestbank will receive full reimbursement of their deposits from the Deposit Guarantee Fund for Individuals (FGV) along with interest accrued as of the end of the day preceding the initiation of the bank's market withdrawal procedure, except in cases provided for by part four of Article 26 of the Law of Ukraine "On the System of Guaranteeing Deposits of Individuals."
In total, the possible amount of guaranteed payouts to depositors of Kominvestbank as of November 21, 2024, is 432 million UAH. As of December 4, 2024, the volume of the bank's highly liquid assets, including government bonds and deposit certificates, amounts to 890 million UAH.
The NBU reminded that with the enactment of the Law of Ukraine dated April 1, 2022, No. 2180-IX "On Amending Certain Laws of Ukraine to Ensure the Stability of the Deposit Guarantee System for Individuals," 100% deposit guarantees for individuals in all banks have been introduced.
According to information published by the NBU, more than 42% of the shares of Kominvestbank are owned by the leasing company “Uzhhorod Cognac Factory” (Uzhhorod), 25% belong to LLC “Plodovoch - UZH” (Uzhhorod), and almost 33% of the shares are owned by LLC “Latuzh” (Mukachevo, Zakarpattia region).