KIEV, July 1 – The Ukrainian cabinet is studying the merger of banks which became under control of the government in 2009 after going under.

"As for Bank Kiev, the most logical development of the bank is to merge with one of the two recapitalized banks: Ukrgasbank or Rodovid Bank," Deputy Prime Minister Serhiy Tyhypko, a former National Bank of Ukraine governor, said in an interview with the Kommersant-Ukraine newspaper.

Ukrgasbank, Bank Kiev and Rodovid Bank took part in the government's recapitalization program. By early April 2010, the cabinet controlled 87.719%, 99.9369% and 99.9907% stakes in their statutory capitals respectively.