Motor-Bank Declared Insolvent
The National Bank of Ukraine has declared Motor-Bank insolvent after it failed to meet regulatory requirements following its classification as a troubled institution. According to the regulator, the bank's regulatory capital at the time of the decision was 173 million hryvnias, which is below the required minimum of 200 million hryvnias. Consequently, the Deposit Guarantee Fund will fully reimburse depositors, including interest accrued up to the end of the day before the bank's market exit procedure began.
The decision to declare Motor-Bank insolvent was made due to its failure to comply with a written demand to submit a revised financial recovery plan. The bank had previously been deemed problematic because of risky activities that led to a breach of the minimum regulatory capital requirement. Motor-Bank's share of the banking sector was a mere 0.01% of the assets of solvent banks as of February 1, 2026, indicating its negligible impact on the overall stability of Ukraine's banking system. This action is part of ongoing efforts to clean up the financial sector and protect depositors.
Impact on the Banking Sector
The National Bank's press service noted that since Motor-Bank is not systemically important, its insolvency will not affect the stability of the country's banking sector. Meanwhile, in June 2024, the Appeals Chamber of the High Anti-Corruption Court upheld a ruling to seize assets belonging to Vyacheslav Bohuslaiev, including those of Motor-Bank, for the state's benefit. The court also extended the preventive measure of keeping Vyacheslav Bohuslaiev in custody until December 20, 2025, with bail set at 908.3 million hryvnias.
The declaration of Motor-Bank's insolvency reflects ongoing challenges within Ukraine's banking system.
While this specific decision will not destabilize the sector overall, it underscores the critical importance of adhering to financial regulations and implementing effective risk management. In an environment where some banks face difficulties, the regulator's role in safeguarding financial stability remains paramount.