Kyiv's court of appeals has satisfied a counterclaim of the National Bank of Ukraine (NBU) against a ruling of the court of a lower instance that declared invalid the regulator's resolution placing bank Financial Initiative to the list of insolvent banks, the regulator has reported on its website.

NBU Governor Valeriya Gontareva presented the interests of the NBU in court. She informed the judges that the bank lost liquidity and equity capital. The bank violated Ukrainian law related to cash turnover and did not implement its liabilities to creditors, in particular, the NBU on refinancing loans.

She said that the country does not have legislation permitting to resume operators of the banks that have been declared insolvent.

On October 5, 2016 Kyiv's district administrative court satisfied the claim of Invest-Service LLC, the full owner of the bank.

The National Bank on June 23, 2015 declared Bank Financial Initiative insolvent. The fund introduced temporary administration in the bank on June 24.

The Kyiv Economic Court on October 15, 2015 in response to a claim of the potential buyer of insolvent Bank Financial Initiative, Perusta Constructions, banned the Individuals' Deposit Guarantee Fund from submitting proposals to the National Bank, making decisions on the liquidation of the financial institution and revoking its banking license.

The fund has to reimburse the deposits of 59,000 people, or 92% of bank depositors. The total amount of payments by the fund is estimated at UAH 3.7 billion.

Bank Financial Initiative was established in 2005. Its sole shareholder as of March 2015 was Invest-Service LLC. The full beneficiary is Oleh Bakhmatiuk.