Feedback
Ukrainian government approves law project on corporate governance of state banks
15:47, 27 September 2017
Ukrainian government approves law project on corporate governance of state banks

It is an important part of the complex reform of the state banks that aims to increase the efficiency of the work of the state banks and the renewal of the debt financing

15:47, 27 September 2017

zn.ua

The government of Ukraine approved the project of the law on the corporate governance of the state banks as Minister of Finance of Ukraine Oleksandr Danylyuk reported at Facebook.

'The gathering of the supervisory boards is provided and the most members of them are the independent professionals that are selected according to the clear transparent procedure', he noted.

'It is an important part of the complex reform of the state banks that aims to increase the efficiency of the work of the state banks and the renewal of the debt financing', the minister added.

Related: Ukrainian banks made $130 million profit since beginning of year, - NBU

The draft law aims for the reconsideration of the principles and mechanisms of the corporate governance of the banks for creation of the management system via the supervisory boards that is isolated from the political influence.

It is proposed that the supervisory board of the bank will consist of seven members and five of them will be independent and two of them will be the representatives of the state (one from the president and one from the Ukrainian government).

The term of office of the supervisory board will be three years.

Related: World Bank expects adoption of land reform in Ukraine this autumn

Also, the draft law provides the list of the criteria that the members of the supervisory board should correspond to.

The government of Ukraine creates the contest committee that will consist of three representatives of the president and three representatives of the government to select the applicants for the post of the members of the supervisory board.

Related: Naftogaz risks to lose financing of EBRD and World Bank

The applicants will be selected through the competitive admissions from the candidates selected by the recruitment company that should have at least ten years of work experience.

The members of the supervisory board will fulfill their responsibilities on a paid basis and the reward will be defined by the offers of the contest committee.

Moreover, the draft law proposes to establish the responsibility for the illegal interference in the work of the officials of the bank.

Related: Ukraine’s economy grew by 2,3% in second quarter of 2017, - National Bank

Particularly, the intrusion of the decisions to the members of the supervisory or executive board that contradict the interests of the state will be fined from 200 till 300 tax-exempt minimums, or punished by the corrective labor in the term up to one year, or arrested in the term from three to six months or imprisoned up to one year.

If such actions will be made by an official then the person will be fined from 300 till 500 tax-exempt minimums, or punished by the corrective labor from one to two years, or arrested up to two years with the prohibition to work at least for three years.

Related: Tigipko plans to buy filial of Russian Sberbank in Ukraine

The project of the law is worked out by the Ministry of Finance and coordinated with the National Bank, National Committee on Securities and Fund Marker and the Ministry of Justice.  

Topics:
Система Orphus

If you find an error, highlight the desired text and press Ctrl + Enter, to tell about it

Comments
see more