IUTE BANK, created by the Deposit Guarantee Fund (DGF) as a bridge bank based on the assets of the failed JSC RwS Bank, has officially entered the Ukrainian banking market. Instead of liquidating the bank, the DGF implemented a resolution that preserved a viable part of the business and transferred it to a private investor.
The National Bank of Ukraine has confirmed that IUTE BANK meets all regulatory requirements, allowing the DGF to end its supervision of the institution.
“This case demonstrates that bank resolution is primarily a mechanism for preserving a business and enabling its continuation,” said Olga Bilai, Managing Director of the Deposit Guarantee Fund. “The establishment of a new bank to operate in Ukraine reflects the DGF’s systematic approach and alignment with modern EU banking resolution practices, which we are gradually integrating into Ukrainian law.”
This is the first case in Ukraine where a bridge bank was sold to a foreign investor and the third bank resolution carried out during the war. The DGF sold 100% of IUTE BANK’s shares to the Estonian financial group Iute Group AS on January 15, following an open tender. The winning bid was selected as the most cost-effective solution.
Tarmo Sild, CEO of Iute Group, said the move reflects a strategic decision to build a digital bank in Ukraine.
“Successfully passing the National Bank inspection and completing the bridge bank process marks an important milestone for IUTE BANK. Our focus is now on providing digital banking services for everyday financial needs in Ukraine,” he said.
IUTE BANK will operate primarily as a digital bank for retail customers, offering deposits, loans, payments, and foreign exchange transactions. Artur Muravytskyi, head of IUTE BANK, said,
“The completion of the transition allows us to operate as a full market participant. Our immediate priority is restoring banking services, followed by the rollout of digital solutions for our customers.”
The establishment of IUTE BANK highlights the effectiveness of the bridge bank approach, which protects the economic value of assets, maintains client confidence, and ensures continuity of banking services. For the DGF, this is part of a broader strategy to safeguard the stability of Ukraine’s banking system through effective resolution of failed banks.
