The Supreme Court has put an end to the case: “Megabank” is recognized as insolvent
28 June 2025 20:06
The Supreme Court has confirmed the legality of the NBU’s decision to withdraw JSC MEGABANK from the market.
On June 24, 2025, the Supreme Court overturned the decisions of the courts of previous instances and confirmed the legality of the NBU’s decision to classify JSC MEGABANK as insolvent, "Komersant Ukrainian" reports.
The ruling of the Supreme Court has entered into force, is final and not subject to appeal.
The NBU informs that the ruling states that the Law on Banks obliges the National Bank to make a decision on insolvency if the bank has not brought its activities in line with the law within 120 days after being recognized as problematic. The martial law does not cancel this obligation, and the National Bank took into account the state of JSC MEGABANK, applying professional judgment, which, in accordance with part five of Article 266-1 of the Code of Administrative Procedure of Ukraine, is the basis for the court to use as its own assessment. In this case, the NBU’s conclusions are presumed to be reliable and objective in court proceedings related to its supervisory activities, and the court should avoid making its own assessment.
The violations identified by the NBU indicate that the business model of JSC MEGABANK does not meet the requirements for capital, liquidity and risk management, which gave the regulator grounds to decide on its insolvency.
“Based on the results of the banking supervision of JSC MEGABANK, the National Bank has repeatedly drawn the attention of its management and shareholders to the presence of potential risks in the bank’s activities. Problems in the bank’s operations were not caused by the introduction of martial law and began long before the war. The NBU’s position remains unchanged: banks that do not comply with regulatory requirements cannot continue to operate, as this poses risks to customers and the stability of the banking system. The Supreme Court confirmed that the classification of JSC MEGABANK as insolvent was a legitimate decision of the regulator,” commented Viktor Hryhorchuk, Head of the Claims and Litigation Department of the NBU Legal Department.
“Megabank was categorized as insolvent by the NBU decision No. 261-рш/БТ dated June 2, 2022.
“Megabank has been operating in the Ukrainian financial market for about 32 years. According to the bank, as of January 1, it served 728,319 customers and had 154 branches in Ukraine. As of that date, the bank’s assets amounted to UAH 9.956 billion.
According to the NBU, the share of the financial institution is 0.46% of the net assets of solvent banks. Megabank’s largest shareholders were Viktor Subbotin (60.74%), the European Bank for Reconstruction and Development (11.29%), the German government (11.29%), and Maxim Yefimov (9.82%).
