The Board of the National Bank of Ukraine (NBU) has declared CB ZEMELNY CAPITAL JSC insolvent for failure to fulfill its obligations to the depositors and other creditors due to insufficient funds within the period established in the agreement or prescribed by laws of Ukraine.
1 July 2021, the NBU Board, in accordance with Article 75 of the Law of Ukraine On Banks and Banking, adopted the decision to declare CB ZEMELNY CAPITAL JSC a problem bank on account of violating liquidity ratios. Since the bank was declared a problem bank, its financial standing and indicators have deteriorated, high-quality liquid assets have declined to a critically low level causing default on customer payments.
Pursuant to Article 58 of the Law of Ukraine On Banks and Banking, qualifying shareholders in a bank are obliged to take timely measures to prevent the bank’s insolvency. However, the sole owner of CB ZEMELNY CAPITAL JSC failed to provide financial support.
Said financial institution accounted for 0.04% of solvent banks’ net assets. The fact that CB ZEMELNY CAPITAL JSC was declared insolvent will not influence the stability of Ukrainian banking sector that remains resilient.
The deposits does not exceed the UAH 200,000 guaranteed by the DGF will be reimbursed in full. Almost 70% of deposits in the bank fall within this category. Larger customer deposits will be reimbursed up to the compensation cap guaranteed by the DGF. The total possible amount of guaranteed payments to depositors as of 1 July 2021 stands at UAH 435.8 million (92% of the total amount of retail deposits).
CB ZEMELNY CAPITAL JSC was declared insolvent by the NBU Board decision No. 400-рш/БТ dated 11 August 2021.
Follow the link to see the full text of the decision published at the NBU’s official website.