The Czech National Bank erred in withdrawing its license in 2014 from WPB Capital. According to the court, this was a disproportionate intervention, a spokesman for the board of directors of WPB Capital, Martin Jaroš, told ČTK today. The Municipal Court in Prague ruled on the bank’s action against the Bank Board’s decision on Friday, court spokeswoman Markéta Puci confirmed to ČTK. The CNB now has to reconsider its approach to WPB Capital. The CNB stated that it would wait for a written judgment of the Municipal Court in Prague.
“At the hearing on Friday, June 15, the court annulled the decision of the administrative body and returned the administrative body to a new hearing,” Puci told ČTK. She did not state any other reasons, stating that the judgment has not yet been written. The deadline is one month. The CNB will decide on further action in administrative and judicial proceedings, including the filing of a cassation complaint, only after the judgment has been delivered, Denisa Všetíčková from the central bank’s press department divided ČTK.
“After proving, the Municipal Court in Prague ruled that the CNB had chosen the wrong course of action against WPB Capital when the revocation of the license was disproportionate. the court was found to be unconvincing and, in justifying its decision to recommend the court even for serious errors in the conduct of administrative proceedings, “she said. WPB. Representatives of the bank now intend to carry out an in-depth analysis of the state of the cooperative, which has been managed by the central bank’s liquidator Jiří Švihla in recent years.
The bank’s lawsuit also pointed to the bias of the then CNB employees, especially Vice-Governor Vladimír Tomšík. According to the bank, at the end of 2013, Tomšík repeatedly met with former WPB member Pavel Petrovič, who sought to destroy the bank and take control of its property.
WPB got into trouble in 2013 and lost its license a year later in June. The CNB justified the withdrawal of its license by stating that the bank artificially increased the capital from the bank’s money provided in the form of loans, acquired illegal types of securities and circumvented the exposure limit. According to today’s WPB statement, the cooperative had a balance sheet total of around 5.4 billion crowns in 2012 and reported a pre-tax profit of 116 million crowns. According to data in the Commercial Register, net profit for 2012 reached 91.5 million crowns.
The financial market guarantee system, after the license was revoked, subsequently paid 2,799 billion crowns among 6,898 clients who were legally entitled to the payment of deposit compensation. The clients of the bankrupt bank had the last opportunity to submit a request for payment of the money they had stored in the campsite at the time of its fall, until October 16 last year. For the fund, the WPB Capital deposit deposit payment was the fourth highest payout in history.