NBU to continue to bring Ukrainian banking legislation in line with EU laws

The National Bank of Ukraine (NBU) plans to continue bringing the Ukrainian banking legislation in line with the EU legislation and introducing best world practices.

NBU Governor Kyrylo Shevchenko wrote about this on Facebook.

“The NBU welcomes the European Parliament’s resolution on the Implementation of the EU Association Agreement with Ukraine. This resolution was passed by a vast majority of the European Parliament. The resolution highlights the success with which the Association Agreement has been implemented and the European Parliament’s strong support for the efforts to further deepen Ukraine’s integration with the EU,” he wrote.

The resolution says that Ukraine has made significant progress in meeting its commitments under the Association Agreement and in terms of EU integration, including the banking sector.

The National Banks is grateful to Ukraine’s European partners for high evaluation of the NBU’s efforts. Shevchenko stressed that the regulator takes needed steps to defend the legitimacy of the decisions to nationalize PrivatBank and preserve financial stability, and will not allow taxpayer money to be lost.

“The NBU plans to continue to help align Ukrainian banking laws with EU laws and promote the implementation of global best practices in banking. We have recently submitted for the Ukrainian Parliament’s consideration a draft law on improving corporate governance in banks, which has been endorsed by IMF experts. The adoption of this law will also strengthen the institutional capacity of the NBU and its independence. The law will increase the responsibility of bank management bodies for decision they make, and will improve the transparency and stability of individual banks and the entire banking system. The document enhances the effectiveness of the internal control system at Ukrainian banks, including risk management. The proposed rules will set updated requirements for capital structure and capital adequacy ratios, in line with the EU’s CRD IV/CRR Directive,” he wrote.

The NBU governor also assured that nothing threatens the central bank’s independence.

As reported by Ukrinform, on February 11, 2021, the European Parliament adopted a report on the implementation of the EU Association Agreement with Ukraine, a draft of which was prepared by MEP Michael Gahler (EPP).

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