The Court reconfirmed the proper exercise of banking supervision by the National Bank of Ukraine over the resolution of insolvent banks.
On 31 May 2017, the Kyiv Administrative Court of Appeal rejected an appeal seeking to challenge the Kyiv Circuit Administrative Court’s ruling of 22 March 2017. The above ruling rejected a claim demanding the regulator’s inaction in respect of Delta Bank JSC be recognized as illegitimate.
Delta Bank JSC was declared insolvent on 2 March 2015. On 2 October 2015, the NBU, acting in line with the Deposit Guarantee Fund’s proposal, issued a decision to revoke the banking license held by this financial institution and wind up this bank.
The main reason behind the decision to declare Delta Bank JSC insolvent was the failure by the bank owner to take timely, efficient and sufficient measures to improve the bank’s financial standing and bring its operations into conformity with applicable Ukrainian laws.
Over the period of 2014-2017, the NBU has won 56 court cases in which the claimants demanded that the courts recognize as illegitimate omissions (inaction) of the regulator in respect of the banks that have been declared insolvent or placed into liquidation. Another 55 cases are currently under litigation at courts.