The National Bank of Ukraine(NBU)on September 24 made a decision to revoke the banking license and liquidate Bank Arcada(Kyiv), according to the regulator's website.
"The NBU, at the suggestion of the Deposit Guarantee Fund, made a decision dated September 24, 2020 under No. 601-RSh to revoke the banking license and liquidate Bank Arcada," the report says.
As reported, on August 25, the National Bank declared Bank Arcada insolvent, due to the decrease in capital ratios to less than one third of the minimum established level because of the loss of the main asset - the head office building and the land plot at 3 Olhinska Street in Kyiv.
The bank reportedly pledged the property as collateral for a loan attracted by a developer related with the bank and lost it due to the developer's untimely debt service.
From September 11, 2020, the Deposit Guarantee Fund began to make payments to the bank's depositors under agreements that expired before August 25, 2020, and under bank account agreements(current). More than 90% of Bank Arcada depositors(more than 5,000 persons)will receive deposits in full, since their size does not exceed the amount of UAH 200,000 guaranteed by the fund, and larger deposits will be reimbursed within the guaranteed amount. It was clarified that in general the fund will provide payment of UAH 285 million.
Bank Arcada was established in 1993. According to the NBU, the owner of the bank's significant stake as of June 1, 2020 was Kostiantyn Palyvoda(a total participation of 74.797%).
According to the National Bank, as of August 1, 2020, in terms of total assets(UAH 1.877 billion)Bank Arcada banked 45th among 75 banks operating in the country.