The President of Ukraine Petro Poroshenko has signed bill #2277-VIII “On amendments to certain laws of Ukraine regarding the introduction of a credit register of the National Bank of Ukraine and the improvement of banks’ credit risk management”, the press service of the head of state has informed, Interfax-Ukraine reports.
The Parliament of Ukraine voted in favor of the bill on 6 February.
In order to lower credit risk, to ensure the security of banking transactions, to enhance the stability and reliability of the banking system, to protect customers and other creditors, the law provides for the creation and introduction of a credit register for the National Bank of Ukraine. A credit register is an information system that secures the collection, storage, alteration, usage and provision of information on banks’ credit operations and on the state of fulfillment of obligations on such transactions, the analysis and qualification of credits.
From 1 April 2018, banks will be expected to provide information for this register (Individuals’ deposit insurance fund – from 1 July 2018). After that, they are also supposed to notify the client of such transfer, while the client will obtain information on himself from the credit register and the right to demand amending it in case he disagrees with its content.
What concerns the National Bank of Ukraine, depending on the volume owed to a bank, the regulator will be obliged to provide data from the credit register for free. Banks are supposed to take this information into account while evaluating the client from 2019.
The cover memo cites the National Bank’s data as of September 2017: the troubled corporate loans include $6.4 billion worth of Privatbank’s loans, $141 million worth of parties affiliated with banks, $9.4 billion worth of loans to other corporate clients (82% of which are loans provided to 20 business groups).
The law becomes effective on the following day after its publication and it is put into execution two months after the effective date.