August 10, 2025
The Supreme Court put an end to the case of Concord Bank without considering its merits - Olena Sosedka thumbnail
Economy

The Supreme Court put an end to the case of Concord Bank without considering its merits – Olena Sosedka

The Supreme Court put an end to the case of Concord Bank without considering its merits – Olena SosedkaOlena Sosedka, co-founder of the bank, stated that shareholders do not have the right to appeal NBU decisions.

”, — write: unn.ua

The Supreme Court, composed of judges of the Cassation Administrative Court, made a final decision in the case of Concord Bank, but the case was essentially not considered. The National Bank of Ukraine and the Deposit Guarantee Fund for Individuals appealed to the court with cassation complaints. Representatives of Concord also submitted their arguments. This was reported by Olena Sosedka, co-founder of Concord Bank, writes UNN.

Earlier, courts of first instance recognized as illegal the decision of the National Bank of Ukraine to revoke Concord Bank’s license and ordered its cancellation. The NBU and the Deposit Guarantee Fund for Individuals disagreed with these decisions and filed a cassation appeal. They demanded the cancellation of the court decisions and the closure of the proceedings.

“Friends, the Supreme Court overturned two previous court decisions, by which we proved the illegality of the NBU’s actions regarding the deprivation of Concord Bank’s license. After 7 months of waiting for cassation, we received a decision that not only contradicts the law, but also common sense. We were not even summoned to court. The consideration took place in written proceedings – without hearings, without arguments, without the participation of the parties,” wrote Olena Sosedka on her Facebook page.

At the same time, as stated in the decision, the court did not consider the cassations themselves on their merits. Thus, the panel of judges did not refute any of the conclusions of the courts of previous instances. Obviously, there were no grounds for this, because the decisions of the previous courts were based on law, logic, and facts. They, in particular, stated that the National Bank had no right to liquidate the bank without proper grounds. The courts also recognized that the regulator’s inspection was conducted with violations. In addition, the courts did not find any confirmation that Concord was engaged in money laundering or other illegal activities during its operational activities.

Instead of analyzing the merits of the cassation appeals, the Supreme Court concluded that the shareholders of a bank undergoing liquidation generally have no right to challenge the NBU’s decision to revoke the bank’s license.

And although the panel of judges did not refute the correctness of the conclusions of the courts of first and appellate instances (and how could it – they are obvious), it came to an absurd conclusion: they say, we generally had no right to sue the NBU, and there is no court in Ukraine that should consider such claims. But isn’t this a gross restriction of our constitutional right to a fair trial? Why are bank shareholders worse than other Ukrainians? Why such selectivity?

Therefore, without considering the cassation appeals on their merits and without giving a legal assessment of the decisions of the courts of previous instances, the panel of judges canceled the decision of the Dnipropetrovsk District Administrative Court and, accordingly, the appellate court, and closed the proceedings in the case, effectively leaving the disputed decision of the National Bank in force without a legal assessment of its legality.

According to Olena Sosedka, the Supreme Court’s decision looks biased:

“It is especially striking that the Supreme Court ignored its own practice in similar cases. Moreover, the reporting judge in the Concord case participated in the consideration of another bank’s case just two days before… and there he made the opposite decision.

This is already like a joke:

— How much is 7×8?

— Are we buying or selling?

All these facts indicate the bias of the decision.”

In practice, this means that if tomorrow the National Bank decides to liquidate any bank, even without obvious reasons, its shareholders simply lack a legal mechanism to protect their rights.

AddendumDespite the war in Ukraine, the process of withdrawing banks from the market has not stopped. Thus, since February 24, 2022, liquidation has been initiated for 8 banks. In 2023, for the first time in Ukraine, not only bankrupt banks but also profitable institutions were subject to liquidation and license revocation – this refers to Concord Bank. As Olena Sosedka stated, at the time the regulator announced the decision to liquidate the bank, the financial institution had enough highly liquid assets to make all necessary payments within 2-3 weeks. However, the bank liquidation process is strictly regulated by law and can generally last up to three years.

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