Ukraine’s regulator declares Forward Bank insolvent

8 February, 04:57 PM
Ukraine’s regulator declares Forward Bank insolvent (Photo:Forward Bank via Facebook)

Ukraine’s regulator declares Forward Bank insolvent (Photo:Forward Bank via Facebook)

The National Bank of Ukraine (NBU) declared JSC Forward Bank, owned by Russian citizen Rustam Tariko, to be insolvent, the central bank reported on Feb. 8.

The NBU took this decision due to the irreversible deterioration of the bank’s financial condition.

The bank has been considered problematic since Nov. 24, 2022 due to a drop in its income, which created the risk of it dipping lower than its statutorily required capital levels.

Since then, the bank’s situation has only worsened, with a further fall in capital and no prospects for its improvement.

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The NBU stressed that Forward Bank’s share was only 0.1% of the assets of solvent banks, so its bankruptcy would not affect the stability of Ukraine’s banking sector.

All bank depositors will be able to get their money back through the Deposit Guarantee Fund. The possible amount of guaranteed deposits as of Jan. 21, 2023 was UAH 1.5 billion ($42 million).

Forward Bank operated in Ukraine under the Russian Standard brand until November 2022. Later on, media reported that Russian Standard Bank, the largest in the consumer lending sector, had begun to freeze its business activities until a more favorable economic situation developed.

In November 2022, the NBU temporarily deprived Russian shareholders of voting rights in Forward Bank, Ukrainian Capital, and First Investment Bank.

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