“FinRostBank”, reviews in a positive way about which today is problematic to find in connection with the liquidation of a financial institution, was registered as the national bank of Ukraine on January 29, 1993. The Institute was conducted on the basis of license number 143 dated November 7, 2011. Before the problems began in 2014, the reliability of the institution was ensured by its many years of experience in the financial market. The network of branches was actively developing, and the enterprise itself was an honorary member of the Fund for Guaranteed Deposits of Individuals, starting in 2005.
A bit from the history of the bank
Since its inception, the main focus of the bank was considered partnership with representatives of small and medium-sized businesses. Active cooperation with corporate clients was conducted, foreign exchange transactions were carried out. Flourished activities in the interbank sector. There was an attraction of deposits from both legal entities and individuals. Departments and offices worked throughout Ukraine. FinRostBank (Donetsk and Lugansk, Kiev and Odessa, Kharkov and Dnepropetrovsk, Lviv and Nikolaev, Khmelnitsky and Simferopol, Zaporizhia and Kirov) equally well and professionally served its customers in different parts of Ukraine. The largest shareholder of the financial institution was Alexander Bondarev. He owned about 50% of the shares. In terms of regulatory capital, in the best of times, the bank belonged to the 4th group.
When did the problems begin?
FinRostBank, reviews of which are rarely found in a positive way due to the liquidation of the latter, became the 12th bank in Ukraine, which ceased its full-function activity during 2014. By decision of the Guaranteed Deposits Fund and the National Bank of Ukraine, a provisional administration was introduced at a financial institution. Initially, the duration of its work was to be about 3 months. Her term expired on October 16, 2014. Bank insolvency is associated with the latter's limited liquidity. Since the bank belonged to the category of small financial institutions, the assets of the institution at the last stages of its work amounted to less than 2 billion hryvnias, which provided 81th place in the Ukrainian rating of banks, which number 181.
More on the liquidation procedure
FinRostBank, reviews of which clearly indicate the insolvency of the institution, has already been working under the leadership of the interim administration on July 16. During the reign of the latter, attempts were made to attract investors or realize through the auction a loan portfolio and investment. The history of the financial sector of Ukraine suggests that the interim administration rarely accompanies the restoration of financial institutions. It is called mainly for the beginning and implementation of the liquidation procedure. Following the results of the work of FinRostBank, the interim administration issued its verdict, according to which in October 2014 a decision was made to deprive the financial institution of a license. At the head of the interim board was Alexander Volkov.
What became the prerequisite for the introduction of interim administration?
A prerequisite for the introduction of interim management was a sharp decline in the assets of a financial institution. If in April 2014 the total assets of the latter corresponded to 1.947 billion hryvnias, then by July the figure dropped to 1.555 billion hryvnias. On July 21, the FHFMF set the amount that the Deposit Insurance Fund can reimburse at the level of 523.5 million hryvnias. As of January 13, 2015, FinRostBank recorded 76 million hryvnias of enterprise funds, 821 million hryvnias owned by citizens of the country, of which only 523 million hryvnias were guaranteed for return. The remaining 298 million hryvnias belonged to the category of non-guaranteed deposits.
First negative reviews
According to the clients of FinRostBank, whose problems started in the second quarter of 2014, it did not always provide high-quality and professional service to customers. So, in 2013, quite often there were reviews that when you contacted the support service in response to a question, you could hear rudeness. This trend is faced by regular customers. Repeatedly received signals of dishonest service directly in offices and offices. It is problematic to judge whether these complaints are a reality, but the fact of their presence on the Internet in large numbers makes one wonder.
What do investors say?
The first signal beacons about failures in the bank began to appear in January 2014. It was then that the reviews fell on FinRostBank, according to which, the institution stopped paying deposits, which expired. Some of the bank's customers indignantly said that the financial institution does not issue deposits even in hryvnia in small installments, which are practiced by numerous banks in the country, faced with the problem of lack of capital. There was information that in some cities the branches of FinRostBank Bank (Odessa and Nikolaev) were completely closed without warning. Attempts by citizens to contact the leadership were unsuccessful. Resentment on the part of the public is also due to the fact that the Deposit Insurance Fund is obliged to partially eliminate losses only to those who have no more than 200 thousand hryvnias on their deposit account .
Formal application and saving of deposits
In accordance with the official statement of the fund, the payment of funds in accordance with the agreements should have been carried out during the term of the interim administration, however, there are no feedback from the bank's clients on the satisfaction of their interests. It was not necessary to submit specialized applications to the fund in accordance with agreements that had already ended before the introduction of the interim administration and in the process of its administration. Payments of this category of depositors should have been carried out according to special lists, the formation of which was done by the authorized person of the fund. Reference information on any issues was provided by telephone of the Deposit Insurance Fund hotline and in the contact center of FinRostBank. There was a personal welcome of depositors by the head of the interim administration.
Compensation payment
According to official information, the payment of compensation to FinRostBank depositors began already on August 19. Clients of a financial institution could get into their hands not only the body of the deposit, but also the percentage that was laid on it in accordance with the agreement until the institute began to withdraw from the market. Compensations were drawn up through the branches of UkrSibBank and ImexBank. Recent reviews of FinRostBank, including the payment of compensation, are very rare. This indicates that the procedure for the return of deposits takes place in fact, and there are fewer dissatisfied depositors. Compensation to depositors who, due to certain reasons, did not apply for help to the agent's bank of the fund, was carried out after consideration of their individual written appeals to the fund until the financial institution was included in the list of organizations subject to liquidation. Payments are possible only with a passport and taxpayer card.