PrivatBank
PrivatBank () is the largest commercial bank in Ukraine, in terms of the number of clients, assets value, loan portfolio and taxes paid to the national budget. PrivatBank has its headquarters in Dnipro, in central Ukraine. On 18 December 2016, the bank was nationalized by the government of Ukraine to protect its 20 million customers and to preserve "financial stability in the country". A forensic audit performed by Kroll showed that the bank had been subject to large scale coordinated fraud before nationalisation resulting in losses of at least US$5.5 billion. PrivatBank was the first in Ukraine to connect  Apple Pay. History. PrivatBank was one of the first private commercial banks, established in Ukraine. Decision on PrivatBank establishment was taken at the meeting of its founders on 7 February 1992. On 19 March 1992 the bank already passed its state registration. Serhiy Tihipko was one of the founders and the first chairman of the board. Privatbank was founded in Latvia in the year 1992. One of the first and oldest banks in Latvia. At the very beginning PrivatBank had just one office and several computers. It was the first in Ukraine who introduce plastic cards and ATMs. PrivatBank was  also the first financial organization in Ukraine to get international rating. In 1996 it became a full member of Visa International payment system and commenced the large-scale plastic card emission. In 1997 PrivatBank became the first Ukrainian bank to obtain rating statement from Thomson BankWatch International Rating Agency, and become a full member of Europay payment system. In 1998 the bank obtained its rating statement from Fitch IBCA International Rating Agency. In November 1998 the bank won a tender and was selected as a servicing bank authorized to perform in Ukraine the payments of the Swiss Holocaust Memorial Fund . In 1999 PrivatBank opened its International Banking Unit in Cyprus. PrivatBank branch in Nicosia was the first Ukrainian bank branch established abroad. In 2000 the bank was included in the group of banks authorized to pay compensations to Ukrainian citizens suffered from Nazi pursuit during the Second World War. In 2000 the PrivatBank's form of ownership changed – on 6 July PrivatBank members decided on the bank's reorganization from Limited Liability Company to Closed joint-stock company. Thereupon, on 4 September 2000 the first Articles of Association of the Closed Joint-Stock Company Commercial Bank "PrivatBank" were registered. A  significant event in the Ukrainian banking system was the start-up in 2001 of "Privat24" project, provided a number of customers with an opportunity to manage their accounts online in real time, perform regular payments, transfer funds, etc. In February 2002 PrivatBank emitted its millionth plastic card. In April 2002 PrivatBank representative was selected to Visa CEMEA (Central Europe, Middle East, Eastern Europe, and Africa) Board of directors. In 2003, PrivatBank was named the best service quality bank by its Western Union clients. The same year the bank received STP Excellence Award from Deutsche Bank, confirming its professionalism in international  payments. PrivatBank was the first Ukrainian bank to place Eurobonds in the amount of US$100 million in the European market. PrivatBank was also the first in Ukraine to obtain Standard & Poor's "B-" rating. International rating agency Fitch assigned the final long-term "B-" rating to Eurobonds of PrivatBank. By the decision of shareholders’ at the meeting on 30 April 2009 the bank's activity was brought into compliance with the Law of Ukraine "On Joint-Stock Companies": relevant alterations were introduced in the bank's articles of association, and the joint-stock company's type was changed from  closed to public. Also the bank's name was changed to Public Joint-Stock Company Commercial Bank "PrivatBank". These changes became effective on 21 July 2009 (license of the National Bank of Ukraine No. 22 dated 29 July 2009). In 2010 PrivatBank increased its net profit by 30% – to ₴1.370 billion comparing to 2009. The bank's assets over the above period grew by 32% and on 1 January 2011 made up ₴113.437 billion, customers’ loans and receivables increased by 36% to ₴101.855 billion, liabilities – by 34% to ₴101.557 billion, authorized capital – by 13% to ₴ 8.860 billion, and owners’ equity – by 16% to ₴11.880 billion. In March 2014 Russia put the Moscow subsidiary of Ukraine's Privatbank "Moskomprivatbank" under temporary administration, according to the Russian central bank to prevent its bankruptcy; but "Moskomprivatbank" chairman said the move was the result of "political tensions in relations". On 2 April 2014 PrivatBank sold "Moskomprivatbank" to B&N Bank. In 2016 PrivatBank stated it provided services to 48.6% of Ukrainians who used banking services, and as of 1 April 2016 it had in Ukraine: PrivatBank shareholders. Before the bank was nationalized in December 2016 shares of PJSC CB  PrivatBank were distributed among 21 individuals (99.794% of the total number of shares) and 5 legal entities (0.206%). Over 98% of shares were owned by two shareholders: Hennadiy Boholubov (23 773,384 shares or 49.027% of the total number) and Ihor Kolomoyskyi (23 834,849 shares or 49.154%). Boholubov and Kolomoyskyi were also members of the bank's supervisory board. 2016 nationalization. After a two-year investigation the bank was nationalized by the government of Ukraine, taking 100% ownership, on 18 December 2016. The National Bank of Ukraine stated the bank a capital shortfall of about $5.65bn and that about 97 % of its corporate loans had gone to companies linked to its shareholders. The bank's major shareholder, Ihor Kolomoyskyi, agreed with the nationalizing. The former management of the bank blamed the demise of the bank on "the accounting policy of the National Bank, which has ceased to accept borrowings that we had and that had earlier been accounted for". President Poroshenko stated "It's obvious that the only way to save the bank and ensure the safety of its clients’ funds is to bring it into state ownership". In July 2017 the bank's auditors, the Ukraine subsidiary of PricewaterhouseCoopers , had its audit license removed by the National Bank of Ukraine for its alleged "verification of misrepresented financial information" leading to a $5.5 billion balance-sheet hole. In 2018 the bank reported the highest profit figures of all banks in Ukraine (UAH 5.093 billion, $182 million). Forensic audit. The National Bank of Ukraine instigated a forensic audit by New York-based corporate investigations specialists Kroll Inc. It reported in that "PrivatBank was subjected to a large scale and coordinated fraud over at least a ten-year period ending December 2016, which resulted in the Bank suffering a loss  of at least USD 5.5 billion." It also stated that 95% of corporate lending had been to "parties related to former shareholders and their affiliates". Innovations. Innovative technologies in everyday PrivatBank operations help to maintain its leading position at the Ukrainian financial market. PrivatBank employees use both commonly used technologies such as Skype, Google Docs and Google Wave and their own exclusive developments, for example, electronic document management system "PrivatDoc". PrivatBank was the first bank in Ukraine to offer its customers a simple internet based banking system. On 20 January 2011 "Privat24" internet-bank included 773,890 users. Other today widely  used bank's technologies are Social projects. In 2011 PrivatBank, plans to launch a new social project "PrivatBank against drugs". In January 2011, PrivatBank within 24 hours arranged fee-free fundraising campaign to aid Domodedovo explosion victims (Moscow, Russian Federation). Only in Ukraine over ₴105 thousand was raised. In October 2010 it aided to families of those who died in the road accident in Marganets (Dnipropetrovsk Region, Ukraine); ₴101 thousand raised), In 2010, PrivatBank established a separate charity project "To help is easy!" designed to collect donations for orphanages. The bank provides its ATM infrastructure for fee-free  fundraising for charity funds. In March 2010, it supported sufferers from the explosion in Moscow Subway (₴11 thousand) In June–July 2008, the company helped sufferers from the flood in Eastern Ukraine (₴530 thousand). In 2008, JuniorBank was formed, where children and teenagers learn finance. In 2010, within the project "Create with pleasure!", exhibition galleries with creative works of retirees were arranged in the bank departments. With the help of "Skype: Victory Day" project veterans from many cities and countries were able to find their friends and talk to them. The project was nominated to the European Excellence  Awards 2010. International presence. International PrivatBank network comprises such bank partners as MoscomPrivatBank (Russian Federation), AS PrivatBank (Latvia), AS PrivatBank (Portugal) and TaoPrivatBank (Georgia). In addition, PrivatBank has branches and representative offices in twelve countries around the world, including Italy, Cyprus, Great Britain, Spain and China. On 16 August 2007, the name of PrivatBank's Latvian subsidiary, AS Banka Paritāte, was officially changed to AS PrivatBank as part of a strategy to strengthen the banking group's regional brand recognition.