Rada adopts at final reading ‘bank’ bill necessary for IMF program

Rada adopts at final reading 'bank' bill necessary for IMF program

The Verkhovna Rada adopted at the final reading “bank” bill No. 4367, the adoption of which is an important condition within the framework of the Stand-By Arrangement (SBA) of the International Monetary Fund (IMF).

Some 279 MPs backed the bill at a meeting on Wednesday.

At the same time, during the consideration of the bill, the MPs supported the amendment to expand the composition of the National Bank’s board from six to seven members, adding to it a board member who will be responsible for non-banking financial institutions.

In addition, the MPs supported the amendment, suggesting the creation of companies and enterprises by the National Bank.

As explained by MP Andriy Ivanchuk (Dovira group), the matter concerns the creation of a banknote-mint by the NBU, a special paper factory for making and printing money, as well as representative offices abroad.

As reported, the parliamentary committee of the Verkhovna Rada on finance, tax and customs policy, headed by Danylo Hetmantsev registered “bank” bill No. 4367 on November 12, 2020.

The bill is intended to improve corporate governance in banks, in particular to strengthen the responsibility of the bank’s council and board, and the internal control and risk management system. The bill introduces a new capital structure (including capital buffers) that will strengthen the bank’s ability to absorb losses, as well as additional requirements for members of the bank’s council and board.

The National Bank will be given the right to establish individual size of economic standards for banks depending on the riskiness of activities and the right to demand changes in the composition of the council or board of the bank, if the current composition of these bodies is not able to ensure effective management and control over the activities of the financial institution.

The bill also clarifies certain provisions of banking legislation, in particular regarding consolidated supervision of banking groups, licensing of banks, approval of the acquisition of significant participation in banks and requirements for their ownership structures.



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