The courts resumed work 9 failed banks. NBU called the main risks for the whole system
The courts resumed work 9 failed banks. NBU called the main risks for the whole system
© 7dniv.info
The national Bank demands immediate reform corrupt courts.
Over the past two and a half year the national Bank has recognized insolvent or is completely eliminated more than 80 banks, reducing their total number by almost two times. However, the corrupt courts have already resumed the activities of nine financial institutions.
“In respect of 9 banks, the courts made a decision on the resumption of their activities or cancellation of their classification as insolvent. In particular, banks “Capital”, “Eastern industrial commercial Bank”, “Veles”, “Union”, “Radical Bank”, JSC “Ukrinbank”, “Premium”, “Financial initiative”, “Kievan Rus”, – said the press service of the regulator.
“Such decisions of the courts have already established precedent that when the judiciary is being used by the owners of the banks, withdrawn from the market in their own interests and how vasileysky tool return these banks to the market. This in turn negates the efforts of the NBU to banks recovery and cleanup of the banking sector from banks and zombie banks sinks,” – said the Director of the legal Department of the NBU Oleg Overseas.
The regulator has appealed to the Supreme Court of Ukraine with the appropriate application for review on appeal. NBU also notes the necessity of immediate quality of the judicial reform, which would rule out corruption, improved the efficiency of the judicial system and returned to the credibility of the decisions of the courts, business and society.
See also: NBU recognized Bank “trust” insolvent
The Bank noted that the unjust decisions of the courts create systemic risks for financial stability:
– a return to the market of banks derived from the violation of financial monitoring, regulations, inaccurate reporting, unsatisfactory business reputation of the owners of the Bank, etc., that is “unhealthy” banks that pose a threat to the efficient and safe functioning of the banking system;
– in case of resumption of activities derived from the market of banks, repayment of expenses of the Fund of guaranteeing the deposits of individuals on payment of deposits of individuals (i.e. public funds) may be extended indefinitely;
– the ability for a borrower to restructure its debt before the Bank received a decision of the court. As a rule, the restructuring terms determined by the borrower in the statement of claim and do not correspond to market conditions. A similar restructuring is invalid and thus makes impossible the performance of its obligations by the Fund for guaranteeing deposits of individuals, undermines financial stability and inimical to the state;
– avoidance of liability of Bank owners for bringing banks to bankruptcy and the transfer of this responsibility to the Central Bank of the country;
– the creation of precedent that could give a powerful signal to investors about the futility of creation in Ukraine of the system of protection of creditors ‘ rights and business in the broadest sense.
Note, as of December 6, 2016 investors-natural persons, insolvent banks for 2014-2016, the guarantee Fund of deposits of physical persons paid 79,6 billion.
Earlier, the NBU stated that after Stripping of the banking system, the Ukrainians began to actively carry money on deposits.