“Bank Forward” was left without a license and will be liquidated. The reason for the revocation of the license was the irreversible deterioration in the financial condition of the financial institution.
The National Bank of Ukraine has revoked the banking license and sent the Forward Bank, owned by Russian businessman Rustam Tariko, for liquidation. This was reported in the press service of the NBU. Earlier, on February 7, this bank was declared insolvent.
“To classify Bank Forward JSC as insolvent in connection with the failure of Bank Forward JSC to bring its activities in line with the requirements of the legislation of Ukraine, including the regulations of the National Bank, after classifying it as problematic,” – reported in the decision of the Board of the NBU.
The reason for the revocation of the Forward Bank license was also the irreversible deterioration in the financial condition of the financial institution, while its management did not take the necessary measures to improve the current situation.
Forward is owned by Russian businessman Rustam Tariko, who also holds the position of chairman of the board of directors of the Russian bank Russian Standard. Before the rebranding, the Ukrainian “Forward” was also called “Russian Standard”. Tariko also owns the Roust alcohol holding.
Earlier, Focus wrote that one of the reasons for the deterioration of the bank’s financial condition was the business model, according to which the bank aggressively issued consumer loans. “It made sense for the bank to increase the share of non-interest income, such as commissions, and diversify their sources. In addition, the bank had one of the highest personnel costs in the market, in particular, top management. Because of these risks, the bank ” Forward “without changing the business model would constantly need additional capitalization, even without a full-scale invasion,” expert Evgeny Dubogryz commented earlier to Focus on the reasons for the bank’s instability.
Recall that in 2022, the NBU declared Megabank insolvent, and in July it was decided to liquidate it. In August 2022, Sich Bank was classified as insolvent, which, according to the NBU, did not repay the refinancing loan provided by the National Bank within the prescribed period.
On March 8, it also became known that SBU officers conducted searches at the offices of Ibox Bank as part of an investigation into possible involvement in the laundering of funds received from the gambling business. Ibox Bank was sent by the National Bank for liquidation by the decision of the NBU Board dated March 7.
Focus also understood what would happen to deposits and cards after the NBU tightened the regulations for banks on March 11. In particular, there was an increase in the additional requirement for the formation of required reserves by banks on demand funds and on current accounts of individuals. Due to increased regulations, banking institutions will have to offer customers new deposit solutions, including those for a period of several days with automatic renewal of deposits.
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