Ex-owners of over 20 insolvent banks in Ukraine try to "revive" them via courts – NBU

"Twenty-one cases are currently under consideration in the courts of first instance. As of October 24, the courts have taken 11 decisions that entered into force for 10 banks. These rulings refer to the resumption of activities or the cancellation of decisions to withdraw the banks from the market, namely Financial Initiative, Soyuz, Ukrainian Innovation Bank, Veles, Radical Bank, TK Credit, East-Industrial Commercial Bank, Kyivska Rus, KSG Bank, and Khreshchatyk, the press service said, commenting on the October 24 decision of the Supreme Court of Ukraine to validate the NBU's decisions to remove the insolvent Kapital and Ukrinbank from the market.

Read alsoUkraine's central bank declares GEFEST bank insolventThe National Bank emphasizes that it sees systemic risks for financial stability in the judicial decisions on the resumption of the withdrawn banks' activity, as the return of such banks to the market negates the state's efforts to improve the banking system.

"The regulator expects a speedy implementation of a qualitative reform of the judicial system, which would significantly enhance its effectiveness," the report says.

UNIAN memo. During the banking system purge, which started early in 2014, the National Bank of Ukraine has decided to close 95 banks, with 33 of them being declared insolvent in 2014, another 33 in 2015, 21 in 2016, and another eight in 2017.