The National Bank of Ukraine announces another bank nearing bankruptcy. This time it is Misto Bank, owned by businessman and ex People’s Deputy from the Party of Regions Ivan Fursin.
According to the press service of the NBU, the bank was beyond the permissible current ratio. At a time when the minimum allowable LCR is 80%, Fursin’s bank has reached 18.23%, which is more than four times lower than normal.
The bankruptcy doomsday became known a year ago: at that time Fursin Financial Institution ranked 41st out of 77 in terms of total bank assets.
Moreover, last year the Specialized Anti-Corruption Prosecutor’s Office and NABU investigated the fact that Misto Bank wasn’t declared bankrupt by the National Bank of Ukraine. Litigations were initiated according to the lawsuit filed by Kakhovka Prom-Agro LLC. According to the lawsuit, the deputy head of NBU Kateryna Rozhkova and other NBU officials abused their official position, and failed to recognize Misto Bank as insolvent, which “may lead to money leak in the amount of UAH 835 521 thousand”.
“The bank violated a number of regulations of the NBU, continued to operate, not having sufficient regulatory capital,” authorities said.
However, anti-corruption authorities have repeatedly suspected Fursin of misreporting. According to the official information of National Agency on Corruption Prevention, the owner of Misto Bank was accused of misappropriation of UAH 66.8 million.
In addition, in 2018 Misto Bank failed a stress test by the NBU and was urged to decapitalize. However, Fursin still found a way out.
“Based on AQR and extrapolation results (56 banks that didn’t take stress test), four of the 56 banks identified a need for capital at the reporting date – the beginning of 2018. Two of them were already sufficiently capitalized by the time the testing was completed. Two more banks – the Globus Bank and the Misto Bank – needed additional capitalization, but by the end of 2018 they had already taken the necessary actions,” the NBU said.
That same summer, the National Bank of Ukraine sent a letter to Yanukovych’s associate’s bank arguing for violation of financial monitoring legislation.
Recall that Misto Bank was founded in 1993. Almost 98% of the shares are held directly and indirectly by former Yanukovych’s team member Ivan Fursin. Other shares are held by a citizen of Latvia, Ihor Buymyster.