Ukraine Expands Powers of the National Bank

Tuesday, August 10, 2021
Ukraine Expands Powers of the National Bank

On August 10, the president of the country signed the law "On Amendments to Certain Legislative Acts of Ukraine Concerning Improving the Organization of Corporate Governance in Banks and Other Issues of the Operation of the Banking System"

What the adopted law gives:

  • The quality of work of Ukrainian banks is improving;
  • Protection of the rights of depositors and other creditors is strengthened;
  • Adapts banking legislation to the legal norms of the European Union: strengthens corporate governance in banks by increasing the responsibility of the board and the board of a financial institution for decisions;
  • Expands the list of tasks related to the exclusive competence of the bank's council;
  • Establishes requirements for members of the bank's council and board regarding their collective suitability;
  • Introduces a three-tier internal control system of the bank for integration into the corporate governance system;
  • Prescribes a new structure of the bank's capital, including the requirements for the formation of capital buffers;
  • Establishes requirements for the adequacy of the bank's internal capital and liquidity, taking into account possible risks;
  • Expands the powers of the National Bank in the field of supervision;
  • Tightens requirements for licensing of banks and shareholders.
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