The National Bank of Ukraine has developed and suggested to discuss the new project of legislation regarding the licensing procedure for Ukrainian banks. The document has been published on the institution’s official website, Interfax-Ukraine reports.
According to the data from the central bank, the renewed procedure is necessary to further bring the procedure for bank licensing in accordance with European legislation and the standards set by the Basel Committee on Banking Supervision.
The project specifies various approaches to the regulation of the majority of licensing procedures, guided by the principle of the maximum possible abandoning of the formal approach to an essential, risk-oriented one instead.
"These changes should become some of the key elements of the National Bank's switch to an integrated, risk-oriented monitoring of banks, as well as the implementation of a regulatory inspection and evaluation procedure”, - the regulator’s website states.
The document also changes the criteria for the evaluation of executives' business reputation and professional suitability, the reputation and financial or proprietary standing of banks’ owners, banks’ capability to perform their operations accounting for its business model and its risk profile, among other factors influencing the organization.
Meeting the requirements of the legislation, should it pass, would be mandatory for all banks, and the National Bank expects it to improve the financial security of banks’ customers and creditors.