NBU prohibited obtain credits for unprofitable commercial banks

The National Bank of Ukraine (NBU) prohibited unprofitable commercial banks to obtain straight loans, is said in the NBU decree N.421 of July 22.

The regulator prohibited unprofitable financial institutions to obtain credits and guarantees to insiders, redeem the stocks and purchase private securities. The unprofitable banks have no right to retire securities (besides the cases of repayment at the price that is lower by 50 percents from nominal).

The unprofitable financial institutions must suspend payment of dividends to shareholders, bonuses and fees to the banking officials. The banks have no right to distribute capital in any form, cannot increase volume of capital investments and intangible assets, cannot undertake expenditures for consultations, and cannot open new branches and departments, Ukrayinski novyny reports.