Bank Sich liquidated by the NBU
On October 6, the National Bank of Ukraine decided to revoke the banking license and liquidate Bank Sich, which was declared insolvent in early August.
About it reported Press service of the National Bank.
This decision was made taking into account the proposal of the Deposit Guarantee Fund for Individuals.
The decision to revoke the banking license and liquidate JSC BANK SICH comes into force on October 10, 2022.
Kyiv authorities reportedly expressed their desire to buy out the bankrupt Bank Sich and create a municipal bank. The National Bank stated that if this were to happen, Kyiv would save the state UAH 1,03 billion, but a tender and vote by parliament members (for which no votes were collected) would still need to take place. Participation in the open tender for the bank's purchase requires a contribution of UAH 30 million. If the Kyiv authorities had won the tender, they would have had to spend UAH 999 million on the acquisition and capitalization of the bank. But Bank Sich has been liquidated.
The deadline for qualified investors to submit competitive bids to participate in the bank's divestment was extended until September 19. According to Forbes, five buyers were interested in Bank Sich's assets: Accordbank, RBC Bank, Tascombank, Ukrposhta, and the Kyiv City Administration.
According to the EP, the Fund received only one set of documents from one tender participant within the specified deadline. This participant was a Ukrainian commercial bank, and the Fund did not receive a full set of documents from the Kyiv authorities.
On August 9, the National Bank's Board declared Bank Sich insolvent, citing the bank's failure to meet its refinancing loan obligations to the regulator on time due to a lack of funds. Following this, the National Bank's Guarantee Fund began withdrawing Bank Sich from the market and appointed a temporary administration. The bank's nominal shareholders are Oleg Balanda (55,6%) and Valeriy Razdorozhny (31%).
Sich Bank is known to the general public as the lender in the privatization agreement for the Dnipro Hotel, located on European Square in Kyiv. Back in 2020, the winning bidder, Smartland LLC, secured a UAH 1,05 billion credit line from the bank (the hotel was sold for UAH 1,1 billion).
As of July 1, 2022, 15,3 Ukrainians held UAH 1,23 billion in Sich Bank. According to the law, during martial law, the state guarantees 100% repayment of all deposits held by the population, regardless of their size.
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