The Board of the National Bank of Ukraine decided to classify JSC “Commercial Investment Bank” as insolvent. About this reported press office of the regulator.
It is noted that as of November 1, 2024, this bank’s market share was only 0.04% of the total assets of solvent banks. Because of this, its insolvency will not affect the stability of the country’s banking system.
Such a decision was made due to the fact that Cominvestbank did not bring its activities into compliance with legislative requirements, in particular, regulations of the National Bank of Ukraine. Back on August 8, 2024, guided by Article 75 of the Law of Ukraine “On Banks and Banking Activities”, the NBU recognized Cominvestbank as problematic. This happened due to the establishment of the facts of the bank’s risky activities, which posed a threat to depositors and creditors.
Among the violations, the improper organization of the internal control system, problems with risk management, and insufficient income were identified, which created a risk of reducing the regulatory capital and violating the regulations of the National Bank. Systematic submission of unreliable reporting, which hid the real financial condition of the bank, was also recorded.
After being assigned to the problematic category, Cominvestbank did not eliminate the shortcomings and continued to carry out risky activities, submitting false information about its financial condition. The management and the owners of a significant participation did not take measures to avoid the worsening of the situation, which eventually became the basis for declaring the bank insolvent.
