On 25 January 2017, the Kyiv Circuit Administrative Court adopted the decision in favor of the National Bank of Ukraine in a dispute on the insolvency of Bank Forum PJSC.
According to the case materials, an individual filed a lawsuit in the Kyiv Circuit Administrative Court demanding that the court recognize the NBU’s inactivity as inappropriate. The plaintiff claimed that the regulator’s inactivity and its actions led to the bank’s insolvency.
Having studied the case materials provided and taking into account the NBU’s objections, the court upheld the NBU’s request to dismiss the petition without adjudication.
This decision was another one in an array of true verdicts adopted by Ukrainian courts after a comprehensive exploration of the reasons for the withdrawal of insolvent banks from the market was conducted.
We would like to note that courts of different instances most recently confirmed the legitimacy of the NBU’s enforcement measures applied against CB Nadra PJSC and KSG Bank PJSC.
However, some judges continue to make decisions in favor of banks withdrawn from the market.
The NBU reiterates the proven emergence, within this framework, of systemic risks to financial stability. This is justified by the fact that the owners of insolvent banks withdrawn from the market refer to the court system as a a quasi-legitimate instrument for returning such banks back to the market. This is, in its turn, offset by the NBU’s efforts aimed at restoring the financial health and cleansing of Ukrainian banks.
The NBU considers it necessary to carry out the most prompt performance of quality judicial reform that might make any corrupt action impossible, raise the effectiveness of judicial reforms, and restore confidence of business, and society in the decisions of court.