The NBU Council called the actions of the regulator on the nationalization of “PrivatBank” belated

The Board of the National Bank of Ukraine called the actions of the regulator in the situation with the nationalization of “PrivatBank” late.

This is stated in the conclusions of the Council of the NBU “On the activities of the Board of the National Bank of Ukraine on development of the banking system and individual regulations on the issues of banking activities”.

See also:

The national Bank began forcibly to collect debts on loans of the former shareholders of the “PrivatBank”

“The Board of the National Bank says the lack of work of Board of National Bank oversight over the activities of PJSC CB “PrivatBank”. The belated action of the Board of the National Bank contributed to the adoption of timely measures to stabilize the situation and minimize financial losses”, – the document says.

The NBU reminded that in the end of 2016, given the financial state of “PrivatBank”, the Bank acknowledged it is insolvent.

At that time the national Bank has determined the total need for Bank recapitalization in the amount of 148 billion. Given the systemic importance of the Bank for the financial sector and the economy, “Privat” was nationalized.

Videolibrary audit showed a large number of problem loans “PrivatBank”

TSN. 19:30

Yesterday, 20:49

The Council of the national Bank noted that the capitalization of “PrivatBank” according to the NBU, the state has already spent the equivalent of nearly 5% of GDP.

Given the adopted in the second half of June 2017 a decision on additional capitalization of the Bank in the amount of 38.5 billion hryvnia, the costs of the state can grow to about 7% of GDP.

“As a result of entering into the state capital of PJSC CB “PRIVATBANK” and its share in Ukraine’s banking sector amounted to more than half, including net assets – 56%, deposits – 62%, which is one of the main systemic risks in the banking system”, – stated in the conclusions of the Council.

As previously reported, the General Prosecutor of Ukraine opened a criminal case over possible bringing the then commercial “PrivatBank” to bankruptcy. On 4 July at a farewell press conference said the Chairman of the Board is now the state of “PrivatBank” Oleksandr Shlapak, who several days ago announced his retirement from the post.