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Ministry of Justice of Ukraine

December 19, 2016

No. 1643/29773

DECISION OF EXECUTIVE DIRECTORATE OF FUND OF GUARANTEEING HOUSEHOLD DEPOSITS OF UKRAINE

of November 29, 2016 No. 2636

About approval of the Technique of value assessment of 100% of bank shares, referred to category problem or insolvent

According to Item 10 parts one, parts six of article 12 of the Law of Ukraine "About system of guaranteeing household deposits" the executive directorate of Fund of guaranteeing household deposits solved:

1. Approve the Technique of value assessment of 100% of bank shares, referred to category problem or insolvent which is applied.

2. To provide to department of strategy and normative and methodological providing together with legal department submission of this decision to the Ministry of Justice of Ukraine for state registration.

3. This decision becomes effective from the date of its official publication.

4. To provide to department of public relations and financial education placement of this decision on the official page of Fund of guaranteeing household deposits on the Internet after its state registration.

5. I reserve control over the implementation of this decision.

Managing director

K. M. Vorushilin

Approved by the Decision of executive directorate of Fund of guaranteeing household deposits of November 29, 2016 No. 2636

Technique of value assessment of 100% of bank shares, referred to category problem or insolvent

I. General provisions

1. This Technique is developed for the purpose of realization of the provisions of the law of Ukraine "About system of guaranteeing household deposits", Regulations on conclusion of insolvent bank from the market approved by the decision of executive directorate of Fund of guaranteeing household deposits of July 5, 2012 No. 2, registered in the Ministry of Justice of Ukraine on September 14, 2012 at No. 1581/21893, of other regulatory legal acts of Fund of guaranteeing household deposits (further - Fund).

2. This Technique determines operations procedure of employees of Fund, including the authorized person of Fund, by determination in the conditions of tender of the starting (minimum) price of the bank referred to category problem or insolvent (at stage of temporary administration).

3. Assessment of bank shares by this Technique is performed concerning the bank referred to category problem or insolvent (at stage of temporary administration).

4. In this Technique terms are used in the values determined in the Laws of Ukraine "About system of guaranteeing household deposits", "About banks and banking activity", regulatory legal acts of Fund and National Bank of Ukraine (further - the NBU), including in the regulatory legal act concerning assessment of assets (further - the Technique of assessment of assets).

5. Assessment of bank shares is performed based on the conclusion about the cost of all assets of bank and the size of obligations of bank according to reports of subjects of estimative activities and/or on the Technique of assessment of assets.

II. Evaluation procedure of bank shares

1. The cost of 100% of shares of insolvent bank for the purposes of this Technique is determined within property approach. The main method of property approach to assessment of bank shares is the method of accumulating of assets. The method of accumulating of assets consists in determination of net value of the assets creating property complex of bank. The determined net assets value is adjusted on the size of the suffered losses in case of adoption by the investor of the decision on creation of new bank instead of the acquisition operating (cost of the license).

2. Assessment of assets is performed in the following sequence:

1) obtaining from the authorized person of Fund on temporary administration, responsible structural division of Fund or the subject of estimative activities of conclusions concerning the cost of all assets of bank. In case of availability of assets which cost is not determined the cost of such assets can be accepted at the level of book value;

2) calculation of net value of assets of bank according to this Technique;

3) calculation of the given amount of the income in case of creation of new bank lost by the investor;

4) determination of total estimated value of bank shares by creation of results of assessment on each group of assets and cash flow of the income lost by the investor.

3. Net value of assets of bank is determined as difference between the cost of all assets (including off-balance) and the size of the obligations of bank (including off-balance) determined for date of assessment.

The cost of 100% of bank shares is determined by formula:

Формула 1 к Решению от 29.11.2016 г. №2636

The asset cost for date of assessment is determined by the Technique of assessment of assets.

4. The size of obligations of insolvent bank is accepted at the level of book value. In the presence of contingent obligations (or other obligations considered on off-balance accounts) the size of obligations of bank increases by the amount of such contingent obligations and other obligations considered on off-balance accounts which cost is determined to the equal amount of obligations of bank under the agreement increased by probability of accomplishment by bank of requirements on such by contingent (other) obligation. In the absence of information for determination of the extent of probability of accomplishment by bank of requirements on such contingent (other) obligation, it is determined at the level of 50%.

5. The cash flow of the income in case of creation of new bank (PID) lost by the investor brought to current date is determined proceeding from the following:

1) the authorized capital of new bank - at the level of the minimum requirements established by the law;

2) the term of investment of funds for forming of the authorized capital of new bank on correspondent account of the NBU (time for creation of new bank according to fixed terms of performing procedures, stipulated by the legislation) - 6 months;

3) interest income which the investor could receive for time necessary for creation of new bank - at the level of discount rate of the NBU;

4) discount rate of cash flows - at the level of discount rate of the NBU.

Calculation of the amount of the income in case of creation of new bank (PID) lost by the investor brought to current date is perfromed on the following formula:

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