The Supreme Administrative Court of Ukraine has confirmed the decision of the Donetsk Appellate Court on the unlawfulness of declaring the bank “Capital” insolvent by the National Bank, Financial Club reports, citing the SACU decision dd. February 10.

“The resolution of the Donetsk District Administrative Court dd. October 7, 2015, and the decision of the Donetsk Appellate Court dd. November 13, 2015, shall be left unchanged”, - the document says.

Such SACU decision can be reconsidered only by the Supreme Court.

The court proceedings on this issue were initiated in August 2015, when the financial industrial company “Capital” filed a suit to the NBU and the Deposit Insurance Fund with the claim to declare illegal and cancel the resolution of the National Bank №466 dd. June 20, 2015 “On Declaring the Bank “Capital” Insolvent” and the decision of the Executive Office of IDIF №140 dd. June 20, 2015 “On Imposition of Temporary Administration in the Bank “Capital””.

On October 7, the Donetsk District Administrative Court satisfied plaintiff’s claims, and on November 13, 2015, the Donetsk Appellate Administrative Court left such decision unchanged.

NBU disputed such decisions of the court of the first instance and the court of appeals in SACU. The panel of judges of the SACU rejected the appeal of the National Bank, recognizing that the regulator’s arguments on the violation by the bank “Capital” of normative requirements in terms of insufficiency of reserves for loan transactions and accounts receivables are unreasoned.

In addition, SACU recognized that the NBU opinions that the bank “Capital” does not fulfill its obligations to depositors and creditors are unreasoned and not confirmed with the materials of the case.