February 03, 2025
PRESS RELEASE
On January 31, 2025, an agreement on transferring of the part of assets and liabilities of JSC "COMINVESTBANK” to the JSC “ASVIO BANK” was signed.
Recall, that on December 9, 2024 the Deposit Guarantee Fund (hereinafter – the DGF) announced an open competition aimed to attract an investor/assuming bank in order to resolve JSC "COMINVESTBANK”. JSC “ASVIO BANK” was defined as a winner of the competition, since the bank suggested the least cost scenario of the failed bank’s resolution – alienation of the part of assets and liabilities in favor of assuming bank with the further liquidation of the failed bank. In total, 5 entities expressed their interest in participating in the tender.
“Due to the timely measures and close cooperation of the DGF and The National Bank of Ukraine (hereinafter – NBU) in the early stages, the bank’s assets were secured and the industry expressed a high level of interest in the assets and liabilities of JSC "COMINVESTBANK”. The key aim of the DGF is implementation of the resolution plan, according to the least cost principle c. The DGF applies the best international practices to recover as much funds as possible for the bank’s creditors. In this case we applied resolution method, which is similar to the “sale of business” tool defined in the EU BRRD Directive,” said Olga Bilai, the Managing Director of the DGF.
“The NBU continues to apply a risk-oriented approach for banking supervision to ensure a timely response to the creditors’ and depositors’ risks. According to this approach, which matches the best world practices, the NBU aims to respond proportionally to the development of events, including cases of an inadequate corporate bank governance and identified weaknesses of the risk management systems. This allows the regulator to apply impact measures in time, protecting the depositors and creditors from further negative development of events. This approach is particularly important in the light of the full guarantee of deposits during the martial law. The NBU also appreciates the agreement on transferring part of assets and liabilities to a working bank, since this minimizes costs of the public and economy in general. The work of the DGF and the assuming bank here creates a very positive precedent,” Andrii Kotiuzhynskyi, Director of Integrated Banking Supervision Department of the NBU, commented.
Under the terms of the agreement, JSC “ASVIO BANK” acquired rights and liabilities of a debtor for all retail deposits (including sole traders) of JSC “COMINVESTBANK” (excluding amounts already paid out by the DGF) and part of the bank’s liabilities to the other creditors, which belong to the seventh priority. The agreement with the assuming bank provides for the preservation of all the terms of the contracts – type of the deposit, currency, interest rate, repayment period, etc. This means that individuals and legal entities, whose funds and liabilities were transferred to JSC “ASVIO BANK”, became clients of this bank. The total value of transferred liabilities amounts to UAH 303.7 million.
The total value of transferred assets is equal to the value of the transferred liabilities. It is, in particular, a part of loan portfolio (loans of the legal entities), government bonds, building of a banks’ branch together with all assets in it.
“Such type of agreement was considered impossible a year ago. Today we can provide new clients of the bank with access to digital products and a high level services, both offline and online. In these two years our team has done what another banks don’t manage to achieve even in ten years. It is actually a quantum leap in the financial landscape of Ukraine. For me, this agreement is a case of quality financial services scaling. Quality financial service is about a lifestyle,” said Yevhen Shulika, CEO of JSC “ASVIO BANK”.
The liquidation procedure of JSC “COMINVESTBANK” commenced after February 5, 2025. Liabilities to creditors, which are not being transferred to the assuming bank, shall be settled during the liquidation procedure in the order provided for in the Article 52 of the Law of Ukraine “On Household Deposit Guarantee Scheme”.
The provisional administration in JSC “COMINVESTBANK” started on December 6, 2024, pursuant to the NBU Board’s decision. The total covered deposits of JSC “COMINVESTBANK” is UAH 477.6 million. During the provisional administration the depositors were paid out UAH 215.1 million by the DGF.
Recall, that pursuant to the Law of Ukraine “On Household Deposit Guarantee Scheme” and the Law of Ukraine “On Amendments to Certain Laws of Ukraine on Ensuring the Stability of the Household Deposit Guarantee System”, 100% guarantee applies for the deposits in JSC “COMINVESTBANK”, including interests accrued as of the end of December 5, 2024.