The National Bank of Ukraine (NBU) decided on March 7 to revoke the license of and liquidate Forward Bank.
The NBU declared the bank insolvent on Feb. 7, meaning that its liabilities were greater than its assets.
According to the NBU, the decision was made due to the fact that the bank didn't take the appropriate steps to comply with the law after it was declared insolvent. Consequently, the NBU deemed, this would only lead the bank's financial standing to become worse with time.
Given that the bank accounts for 0.1% of solvent banks’ assets, the NBU deemed that declaring it insolvent wouldn't pose an issue for the stability of the economy. Those who have money deposited in the bank will be reimbursed, according to the statement.
Previously, Forward Bank was called Russian Standard Bank in Ukraine and changed their name in 2014. Russian Standard bank was founded by Russian oligarch Roustam Tariko, who was put under sanctions by Ukraine in October 2022.
This move is part of an ongoing effort to restrict Russian financial influence over Ukraine. On Feb. 22, President Volodymyr put forward a draft law to impose sanctions on all Russian-affiliated financial institutions.
Under the proposed economic sanctions, all financial institutions located or registered in Russia, including banks, insurance companies, payment systems, investment funds, non-bank credit organizations, and others, would be banned from doing business in Ukraine for up to 50 years.
The sanctions consist of 10 points, including the suspension of the movement of assets belonging to Russian financial institutions, a ban on establishing business relations and correspondence, and a prohibition on entering into agreements and making investments in favor of such institutions.
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