Kyiv Administrative Court of Appeals has satisfied an appeal from the National Bank of Ukraine (NBU), cancelled a ruling by Kyiv District Administrative Court, and upheld an NBU decision on tougher requirements on the regulatory capital of banks (No. 273), according to the press service of the Association of Ukrainian Banks (AUB).
According to a press release, Kyiv Administrative Court of Appeals made a relevant ruling on Feb. 22.
As reported, in June 2010 the NBU approved resolution No. 273, in which the central bank obliged banks to form regulatory capital of at least Hr 120 million in the period until Jan. 1, 2012. The NBU also banned banks that have regulatory capital lower than is required from raising deposits from individuals.
A group of commercial banks, at the initiative of the Association of Ukrainian Banks, contested in court NBU decision No. 273. The association representatives earlier noted that the administrative toughening of requirements on the absolute size of regulatory capital only for small banks would lead to their exclusion from the market through non-market methods.
According to an AUB press release, the banks’ representatives were not informed in time about the materials of the trial and thus had no chance to prepare for it properly.
"The court session was held in violation of the law. After the AUB and the banks receive the full text of the decision of Kyiv Administrative Court of Appeals, they will decide on an appeal at a higher authority," the document reads.
