The National Bank of Ukraine (NBU) in resolution No. 612 of September 17 decided to place public joint-stock company Bank Finance and Credit, which is under control of MP Kostiantyn Zhevaho, in the category of insolvent banks, the central bank said on its website.

"Bank Finance and Credit took liabilities to support the bank's liquidity thanks to sale of non-profile assets of the shareholder and observe the level of mandatory reserves and other requirements… When the shareholder did not fulfill its liabilities, we reacted quickly. Today, the bank was declared insolvent and transferred to the fund [the Individuals' Deposit Guarantee Fund]," reads the report, citing NBU Governor Valeriya Gontareva.

NBU said that 93.2% (234,000 people) of all depositors in the bank would receive their deposits in full, as their deposits do not exceed the sum guaranteed by the Deposit Guarantee Fund of UAH 200,000.

Gontareva said that NBU had been working on the financial readjustment program both with top managers of the bank and its majority shareholder – Zhevaho. She said that the bank had problems for seven months, and during the whole period the shareholder observed all the recommendations of the NBU.

However, these measures was not enough, and the shareholder failed to fulfill its written liabilities to support liquidity and requirements in the agreed terms, in particular, for reserves, regulatory capital adequacy and liquidity, the regulator said.

"When it was time to pay debts and sell assets, the shareholder did not do this in the proposed term. I want to say that this bank is not systemic, and placing it to the category of insolvent banks brings no threat to stability of the country's banking sector," Gontareva said.

She said that a lion's share of the bank's assets was linked to crediting of business of the majority shareholder.

Bank Finance and Credit was founded in 1990. The ultimate beneficiary of the bank is Ukrainian businessman and MP Kostiantyn Zhevaho, a majority shareholder and CEO in Ferrexpo, a major iron ore pellet producer and exporter.

Bank Finance and Credit ranked 10th among 127 operating banks in the country as of July 1, 2015, in terms of total assets worth UAH 38.882, according to the National Bank of Ukraine. Its liabilities to individuals as of July 1, 2015 totaled UAH 16.98 billion, including UAH 11.61 billion pegged to foreign currency.