Return of deposits from a liquidated bank

When a bank is liquidated, depositors are left with the question of how to get their deposits back. It is worth noting that the National Bank’s decision on the insolvency of a banking institution and its subsequent liquidation is not a reason for depositors to be left without their own funds. If you recognize yourself in the description of this situation and want to return your deposit, you have come to the right place. The lawyers of Prikhodko & Partners Law Firm specialize in such cases, as banking law is the focus of our practice.

Large banks liquidated during a full-scale war

When a person invests money in a bank that seems reliable, he or she hopes for the best – to protect his or her money from inflation and, if possible, to grow it thanks to a favorable interest rate. However, this is not always the case, as even large banks can go bankrupt. Consider the information from the National Bank about those powerful banking institutions that have been liquidated since the beginning of the full-scale Russian invasion of Ukraine. In 2022, these were «MEGABANK» JSC and «BANK SICH» JSC. And in 2023, these are such well-known banking institutions as: JSC «BANK FORWARD», JSC «IBOX BANK», JSC «UKRBUDINVESTBANK» and JSC «JSCB CONCORD».

What does the law say about bank liquidation?

The key legal framework on this issue is as follows:

1. Law 2180-IX «On Amendments to Certain Laws of Ukraine on Ensuring the Stability of the Deposit Guarantee System» dated April 1, 2022;
2. The Law of Ukraine «On Banks and Banking Activities»;
3. Decision of the Deposit Guarantee Fund No. 14 dated August 9, 2012.

In particular, Article 77 of the Law «On Banks and Banking Activities» states that a bank may be liquidated in two cases: by the decision of its owners and in case of revocation of the banking license. As for the second reason, it may occur in the following situations:

• on the NBU’s own initiative;
• at the proposal of the Deposit Guarantee Fund.

Law 2180-IX provides for the full reimbursement of individual deposits by the Deposit Guarantee Fund for the period of martial law.

As for the Decision of the Deposit Guarantee Fund mentioned above, it provides for a general procedure in accordance with which compensation is paid. Another legal act that is worth mentioning in the context of this topic is the Law «On the Individual Deposit Guarantee System».

What new service for depositors has «Diia» introduced?

The Ministry of Digital Transformation, together with the Deposit Guarantee Fund, has launched a new service. Now, depositors of 34 failed banks can apply for deposit refunds through the «Diia» portal. The step-by-step algorithm is as follows:

1. you need to go to «Diia» and select the bankrupt bank where you had an account;
2. if you had deposits in several banks that went bankrupt, you need to make separate applications for each of these bankinginstitutions by selecting them from the list;
3. select the «ePidtrymka» card to which you want the funds to be transferred;
4. check the accuracy of your contact information;
5. sign the completed application using «Diia.Pidpys».

According to Minister Fedorov, when the service was launched in 2023, the amount of funds to be returned reached UAH 3.2 billion on 1.4 million accounts.

What can we do for you?

Given that the team of Prikhodko & Partners Law Firm specializes in these issues of banking law and is accustomed to working for results, we will help you effectively.

The services we provide in this area of law include:

• Consulting. During the consultation, we will answer all your questions and guide you in your strategy and prospects.
• Legal support. We will facilitate the process of returning your deposit. In addition, qualified lawyers have such a legal tool to protect the rights of their clients as a lawyer’s request. Authorized bodies and their officials have a fairly short time frame in which they must respond to it. This often helps to speed up the process if it is artificially slowed down.
• Representation in court. This method of influencing the situation is also used quite often.

Therefore, if you are faced with the problem of non-return of funds from a liquidated bank, it will be very appropriate to consult a lawyer on the next steps and prospects for the return of funds. We will provide you with quality advice and legal support for the deposit return procedure.