The members of supervisory boards of state-owned banks that represent the state could distort competition on the banking market, and this situation needs to change. The Antimonopoly Committee of Ukraine said this in its recommendations for the Ministry of Finance, Interfax-Ukraine reports.
“The committee recommends implementing measures to ensure the conditions for appointing heads and members of supervisory boards of state-owned banks or banks with a large state stake, which would not allow them to act in accord or create a significant influence on the market,” the committee explained.
The anti-trust agency reminds that its recommendations are mandatory and their results must be reported within a period of 30 days.
The committee points out that currently there are members of the supervisory boards of three other state-owned banks on each of the four-state owned banks. Additionally, the head of the supervisory board of Oschadbank is the head of the supervisory of Ukreximbank at the same time.
“The market role of state-owned banks and the simultaneous employment of the same people to positions in the management roles of several of these companies is likely to have a negative influence on competition in the banking services market,” the anti-trust authority concluded.