SBI investigation of the NBU's chief lawyer: a new challenge for the regulator

The reputation of the National Bank of Ukraine (NBU) is under serious threat due to the situation surrounding the institution's chief lawyer, Oleksandr Zyma. The State Bureau of Investigation (SBI) is investigating criminal proceedings over Zyma's alleged abuse of office, which raises questions not only about his compliance with professional ethics but also concerns about the NBU's image as a national regulator.

The criminal proceedings were opened because of a letter that Oleksandr Zyma sent on behalf of the National Bank to the Deposit Guarantee Fund (DGF). In this document , he recommended that the Fund withdraw the lawsuits filed by Concord Bank against the National Bank. Representatives of the bank challenged in court the fines imposed on Concorde totaling almost UAH 63.5 million. 

Despite the fact that these lawsuits were filed before the NBU decided to liquidate the bank and introduce a temporary administration, the Fund implemented Zima's recommendations.

It turns out that instead of the National Bank's chief lawyer defending the legality of the regulator's decisions in court, he decided to simply order the withdrawal of the lawsuits and thus resolve the problem.

Experts interviewed by UNN note that he had no right to make such recommendations that could have significant financial consequences, and therefore exceeded his official authority. Judging by the fact that criminal proceedings have been opened over this fact, investigators also suspect that Zyma may have committed a violation.

At the same time, such actions by Oleksandr Zyma, director of the NBU's legal department, not only call into question his professionalism and suitability for the position, but also cast a shadow over the reputation of the entire regulator.

Political expert Viktor Bobirenko emphasized that an official in the West would have resigned for similar actions in order not to compromise the entire state institution.

Possible abuse of office by Zyma also creates additional pressure on the NBU leadership. The situation becomes even more complicated given the international aspect, as such scandals can negatively affect the image of the NBU in the international arena. This, in turn, may affect the investment climate in Ukraine, as well as the attitude of foreign partners and financial institutions to the Ukrainian regulator.

In addition, the credibility of the National Bank within Ukraine may also be shaken.

"The fact is that in any civilized country, the banking system is an indicator of trust, first of all, of citizens in the banking system. The NBU is a place where not only regulatory decisions and regulations are made, but they should also set an example of how bankers should work. And when we say that there are criminal cases against some NBU executives, it means that for a certain period of the investigation conducted by law enforcement, this official should be suspended. Even if they have not committed any crimes. Because you can't cast a shadow of trust on any NBU employee, even a driver or a bank security guard, let alone someone in such a high position," human rights activist Eduard Bagirov believes.

Confidence in the banking sector is critical in times of economic turbulence, when the efficiency and transparency of the regulator are key to maintaining the stability of the financial system. In this regard, the NBU management should take immediate steps to clarify all the circumstances of the case and ensure a transparent investigation. In particular, it should conduct an internal audit of Oleksandr Zyma's actions and provide the public with a clear explanation of the situation with the Concorde Bank lawsuits.

In addition, the investigators of the State Bureau of Investigation should quickly bring the case to court, as delays in its investigation and attempts to postpone the criminal proceedings against Zyma forever could have disastrous consequences. At the moment, the SBI is in no hurry to take the case to court or even investigate it at all.

Investigators, in particular, have been failing to comply with a court decision for more than four months now, which recognized Yulia Sosedka, co-owner of Concord Bank, as a victim in the case against Zyma. Security expert Serhiy Shabovta does not rule outthat the investigators' slowness is due to the fact that Zyma is a person close to NBU Governor Andriy Pyshny. That is why he is confident that he will not be prosecuted in accordance with the current legislation for the violations committed.