On 14 March 2017, the Kyiv Administrative Court of Appeal confirmed that the National Bank of Ukraine duly exercised its supervisory functions in respect of Bank Finance and Credit PJSC.
In December 2016, the Kyiv Circuit Administrative Court sustained a claim filed by the customers of Bank Finance and Credit PJSC, demanding that the court recognize that the NBU has failed to duly exercise banking supervision over Bank Finance and Credit PJSC, which eventually drove the bank into insolvency.
The NBU, seeking to challenge the ruling by the court of the first instance, filed an appeal to the Kyiv Administrative Court of Appeal, which has ruled today to sustain in full this appeal.
As a side note, the NBU declared Bank Finance and Credit PJSC insolvent on 17 September 2015. This decision came following the bank shareholder’s failure to fulfil a written undertaking to support liquidity and comply with the prudential ratios within an agreed timeframe. On 17 December 2015, the NBU, upon the proposal of the Deposit Guarantee Fund, issued a decision on the withdrawal of the banking license and liquidation of this bank.
In particular, over the period of 2014-2017, the NBU has won 49 court cases in which the claimants demanded that the courts recognize as illegitimate omissions committed by the regulator in respect of the banks that have been declared insolvent or placed into liquidation. Another 59 cases are currently under litigation at courts of different instances.