Home » Press centre » News

NBU Took All Planned European Integration Actions in 2018

06 February 2019

Press Release


The National Bank of Ukraine has taken all European integration actions planned for 2018 under the EU-Ukraine Association Agreement.


“The NBU is monitoring the developments and is already actively introducing new European regulations into the national law. We set ambitious tasks and try to follow our goals closely in order to meet all the requirements for becoming part of the EU’s internal financial services market, as envisaged by the EU-Ukraine Association Agreement,” said Volodymyr Kuchyn, Head of the Office for European Integration and International Programs of the NBU.


In 2018, the central bank focused on adapting to the European law in three areas: banking regulation and supervision, capital market liberalization, and operation of payment systems.


Moreover, the NBU has engaged in a new area of European integration – the integration into the EU’s Digital Single Market. This includes facilitating online access to goods and services, creating favorable conditions for the development of digital networks and provision of digital services, and fostering growth of the digital economy. Together with other state institutions, the NBU will implement the roadmap that is currently being assessed by the EU.


In order to ensure the effective and transparent banking regulation and supervision, as envisaged by the EU-Ukraine Association Agreement, the NBU has:

      implemented the mandatory Liquidity Coverage Ratio (LCR)

      developed the framework for implementing the Net Stable Funding Ratio (NSFR), which will be put in place in 2020

      provided the regulatory framework for organizing the the risk management system in banks and banking groups

      launched the Credit Register

      approved the new regulation on bank licensing

      improved approaches to assessment of banks

      prepared the White Book on settling bank insolvency issues in cooperation with international experts

      implemented new supervision tools that are based on risk assessment and the quality of risk management in banks (SREP) following recommendations of the European Banking Authority, etc.


Striving for the gradual shift to the free capital movement, the NBU developed the new currency legislation last year that enabled the long-awaited transition to the new transparent model of currency regulation.


The Law of Ukraine On Currency and Currency Operations was adopted in 2018 and takes effect on 7 February 2019. In order to comply with the law, the NBU has developed a new – liberal and transparent – currency regulation system that is aimed at:

      deregulating investments

      streamlining cross-border transactions with currency assets

      expanding the list of available currency transactions.


As part of the new currency regulation system, the NBU will transition from the system of sweeping control over each currency transaction to currency supervision that operates on the principle “more risk, more scrutiny; less risk, less scrutiny.” For this purpose, the central bank has already developed seven main currency regulations.


The NBU has also been working on improving the operation of payment systems – namely, the central bank has:

      analyzed loopholes in the payment system laws together with EU experts

      prepared the roadmap for implementing the Second Payment Services Directive of the EU (PSD2)

      implemented remote identification of retail bank clients via the NBU’s BankID system, which will provide clients with access to remote services, including both administrative and banking services (e.g., opening an account).


In addition, the NBU has participated in preparing legislative proposals and initiatives relative to other parts of the Agreement – in particular, as regards anti-money laundering, rights protection of financial services customers, counteraction of tax base erosion, accounting and audit, and corporate governance.


For reference


The EU-Ukraine Association Agreement was signed in 2014. According to the agreement, relations between the parties are to evolve from partnership and cooperation to political association and economic integration. The agreement entered into full force on 1 September 2017. Before that, the parties had applied the agreement provisionally.


The NBU has actively negotiated on the agreement and is currently implementing four out of seven sections of the document. Section IV contains most of the obligations regarding the financial sector – particularly the banking sector. It covers trade in financial services, implementation of international standards, convergence of Ukrainian laws and regulations to the EU’s legal framework, capital movement and payments, etc.

Last modification   06.02.2019