Ukraine's biggest commercial bank, PrivatBank, has been nationalised in a move aimed at protecting 20 million customers and preserving financial stability in the country.
The nation's central bank said the problems faced by PrivatBank were mainly caused by its "imprudent lending policy" which led to capital losses.
Ukrainian president Petro Poroshenko has reassured PrivatBank depositors that their money is safe.
The bank is operating normally.
The National Bank of Ukraine (NBU) declared PrivatBank insolvent on 18th Dec. The government subsequently backed the nationalisation.
- Part-owned by the powerful billionaire oligarch Ihor Kolomoisky. He has big stakes in the media and energy industries & has frequently come into conflict with President Poroshenko.
- 20 million Ukrainians who use the bank include 3.2 million pensioners, more than 500,000 students and 1.6 million socially vulnerable households.
- Nationalisation also enables small businesses to continue trading and means 3.2 million public and private sector employees will continue to be paid.