Sale of property of a liquidated bank after settlements with all creditors is not necessary, it burdens the DGF - MP

There is no need to sell the property of a liquidated bank if it pays off all its debts to creditors. Such a function burdens the Deposit Guarantee Fund (DGF), and therefore the legislation in this part needs to be changed. This was stated by Nina Yuzhanina, a member of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, in an exclusive commentary to UNN.

"Well, this needs to be sorted out for sure. I can't imagine why the DGF should retain the obligation to sell the property after all the payments on the bank's debt have been made. I mean, why? In my opinion, this is an unnecessary function that burdens the DGF, and the legislation should be read and amended, of course. It would be the right thing to do," Yuzhanina said.

Answering the question of whether there will be political will for such changes and whether the parliament will support them, she noted that everything will depend on how sufficient the justification for this rule is, i.e., the example and what happens next with the property - both negative and positive examples.

"We just need to find common sense, and the issue will be resolved," Yuzhanina added.

Earlier, Dmytro Kasyanenko, a lawyer at Kasyanenko & Partners, said that shareholders should have the right to dispose of the property of a bank being liquidated after all creditors' claims have been satisfied. According to him , Ukrainian legislation should be brought in line with European standards in this regard.

Recall

Despite the war in Ukraine, the process of removing banks from the market has not stopped. Thus, as of February 24, 2022, the liquidation process was initiated against 8 banks. This year, for the first time in Ukraine, not only bankrupt banks but also profitable institutions were subject to liquidation and license revocation, including Concord Bank. The process of depriving a banking institution of its license takes place without a court. Of course, the owners and shareholders of banks can appeal the decision of the regulator, the NBU, after it has made a decision to liquidate the bank, but in general, the process of removing a banking institution from the market, once it has been launched, is irreversible. In addition, Ukraine does not regulate the liquidation of a profitable bank. According to Olena Sosedka, co-owner of Concord Bank, when the regulator announced the decision to liquidate the bank, the financial institution had enough highly liquid assets to make all the necessary payments in 2-3 weeks. But the process of bank liquidation is strictly regulated by law and can generally take up to three years.