The national Bank has updated the order of application of measures of influence to banks now, before applying sanctions the Bank representative will be invited to the meeting of the Board or of the Committee on supervision and regulation of banks.
“The national Bank has updated the order of application of measures of influence to banks. Now before using measures of the national Bank will invite the representative of the Bank at the meeting of the Board or of the Committee on supervision and regulation of banking activities, supervision (oversight) of payment systems”, — stated in the message.
About it reports a press-service of the NBU.
It is noted that during the meeting the representative of the Bank will be able to give an explanation or to Express objections to interventions. The results of consideration of the explanations and objections will be considered in the final decision of the Board of the National Bank on application of measures of influence.
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So, this approach will provide banks with additional opportunities for protecting their positions. In addition, the decision of the National Bank on application of measures of influence will be a new item: assessments and conclusions. The decision will also contain an explanation of the adequacy of the use of interventions.
It is reported that if the owners of a substantial participation in the Bank there are contradictions, and it’s hurting his activities, the Bank will be recognized as problematic. These changes in the regulations on application by National Bank of Ukraine of measures of influence (hereinafter — Regulations) set by the resolution of Board of National Bank dated 22 June 2020 No. 79, which comes into force on the day following the day of its official publication.
The national Bank has made these changes in Position to bring it into line with the law on the improvement of some mechanisms of banking regulation (No. 590-IX). The Verkhovna Rada adopted this law on 13 may 2020, and on may 25 it came into force.
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The law allows you to complete the procedures of withdrawal from the market of insolvent banks and determines the procedure for compensation to the former owners retired from the market of banks, improving the decision-making procedure by the National Bank, allows you to detect problem banks at an early stage. In addition, it extends the mechanisms of possible participation of the state in removing the Bank from the market.
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