Ukraine is reportedly closing two banks considered close to the ousted president as well a smaller lender which has been hit by the country’s economic and political upheaval.
A senior banking official was quoted by Reuters as saying that the country authorities are closing Brokbusinessbank, Ukraine’s 16th biggest by assets, and Forum Bank, the 24th largest.
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Both lenders suffered from a recession exacerbated by a separatist rebellion in east Ukraine and Russia’s annexation of Crimea.
Andriy Olenchyk, deputy managing director of the state Deposit Guarantee Fund, said other banks could also follow suit.
"The National Bank is stress-testing the banking system and by the end of the year a decision could be taken (on closing) a sizeable group of banks," Olenchyk told the publication.
"Brokbusinessbank is liquidated as of today. The liquidation of Mercury Bank will start tomorrow, not today. The decision has already been taken … and unfortunately Forum Bank also faces liquidation," Olenchyk further added.
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By GlobalDataThe proposed closure of bank highlights the difficult situation being faced by the business community in Ukraine. During the first quarter compared to a year earlier, the economy declined by 1.1% and the government stated it could be down by three to five percent after zero growth in 2013.
