Capital Drop of 50% Triggers Nationalization of Sense Bank by Ukraine's Central Bank

Sense Bank Taken Over by the State

According to Главком: The National Bank of Ukraine decided to nationalize Sense Bank due to risks to financial stability and the inability of sanctioned shareholders to maintain the institution's capital. Between March 2022 and July 2023, the bank's capital plummeted by 50%, while other systemically important banks saw a 29% increase. Sanctions imposed on the shareholders prevented them from providing the necessary capital support, which became the main driver behind the nationalization.

Post-Nationalization Oversight and Inspections

After Sense Bank was transferred to state ownership, the National Bank of Ukraine stepped up its supervision. It conducted on-site inspections and remote analyses of lending, compliance, and financial monitoring. From 2023 through 2026, the NBU sent:

• 13 referrals to law enforcement agencies;
• 4 referrals to the State Financial Monitoring Service.

Evidence emerged of a hidden management structure within the bank before the nationalization. Total fines imposed on the bank between 2022 and 2026 exceeded 1.6 billion Ukrainian hryvnias.

As for Sense Bank's profits from 2023 to 2024, they remained undistributed and were used to strengthen the institution's capital base. In 2025, most of the profit was allocated to cover losses from previous years. On May 6, 2023, the Cabinet of Ministers of Ukraine discussed accelerating changes in the governance of state-owned companies and banks.

Yaroslav Zheleznyak, a member of parliament from the Holos party, alleged that individuals linked to Timur Mindich and Andriy Yermak may have exerted influence over Sense Bank. Between 2022 and 2026, hundreds of inspections of banking and non-banking entities were carried out, highlighting the NBU's active efforts to monitor and regulate Ukraine's financial sector.

This nationalization is part of a broader strategy by the National Bank of Ukraine to maintain financial stability in the country.

National Bank of Ukraine

Against the backdrop of ongoing economic instability and the impact of sanctions on the financial sector, the nationalization of Sense Bank appears to be an attempt to avert further negative consequences for the economy. The NBU's vigorous oversight and monitoring activities also reflect the state's push for greater transparency and stability in Ukraine's banking system.

The recent nationalization of Sense Bank marks a significant shift in Ukraine's banking landscape, especially in light of the National Bank's record profits of 153 billion hryvnias. Understanding how these profits will impact the state budget and the broader economy could provide valuable insights into the government's financial strategy moving forward.