The Appellate Court acknowledged the legality of withdrawal of Bank Mykhailvosky from the market, according to NBU’s press office.

According to the message, Kyiv Appellate Administrative Court of Ukraine acknowledged the legality, validity and justification of the decision of the National Bank on withdrawal of Bank Mykhailvosky PSJC from the market, fully dismissing the case for the shareholder of this bank.

NBU notes that according to the materials, Ecosipan, which is the shareholder of the bank, challenged in the court the regulator’s decision on the legality of withdrawal of Bank Mykhailvosky from the market.

On May 15, the Kyiv District Administrative Court partially satisfied the company’s claim and cancelled the decision of the National Bank and the Individuals’ Deposit Insurance Fund on the insolvency of Bank Mykhailovsky, introduction of temporary administration and its liquidation.

In the meantime, the court declined to obligate NBU to renew the operation of Bank Mykhailovsky.

The National Bank did not agree with the decision of the court of first instance and filed a notice of appeal to the Kyiv Appellate Administrative Court, which was fully satisfied on August 7.

It should be reminded that the management board of the National Bank approved the decision on declaring Bank Mykhailovsky insolvent on May 23, 2016, and on 12 July 2016 the decision was taken on IDIF’s proposal on revocation of the banking license and its liquidation.

The National Bank previously reported that from May 20, Bank Mykhailovsky conducted many transactions on transferring individuals’ deposits from the financial company, connected with the bank, to the balance of the bank.

It increased load on the Individuals’ Deposit Guarantee Fund by 1 billion – from UAH 1.6 bln to 2.6 bln.

As of 23 May 2016, 100% of bank shares belong to Ecosipan, 92.5% of which belong to Victor Polishchuk, 3.9% - Igor Doroshenko and 3% - Victor Erasov.