National Bank of Ukraine

NBU is Launching a Public Discussion on a Draft Model for Regulating Non-Bank Financial Institutions
[go back

22 October 2018

Press Release


The National Bank of Ukraine prepared and published for public discussion the draft White Paper “The Future of Regulating  the Non-Bank Financial Sector regulation” in which presented its vision of a new regulatory framework for the non-bank financial sector. This document outlines the NBU’s approaches to market segmentation, licensing, prudential supervision, reporting, inspections, corporate governance and consumer rights protection.


The NBU will be responsible for a significant part of the non-bank financial market if the Parliament adopts the Draft Law of Ukraine On Amendments to Certain Laws of Ukraine On the Consolidation of Functions of the State Regulation of Financial Markets No. 2431a which was already supported by the Verkhovna Rada Committee on Financial Policy and Banking and recommended for adoption in second reading.


New regulation framework is proposed for insurance companies, credit unions, pawnshops, leasing and factoring companies and other financial companies that perform currency exchange, money transfer, provide funds as loans, provide guarantees, etc.


“As a potential regulator of a part of the non-bank financial market after the split of functions of the National Financial Services Commission, we demonstrate transparency and partnership to its participants and are ready to work together to ensure more efficient market operation. The draft law envisages 12 months of transitional period, during which the current regulation will be in force and the National Financial Services Commission will operate as usual. During this period, we will develop, discuss and improve new market regulations with market participants and get prepared to take over responsibilities.  We are ready for dialogue with the market and to share our vision of a new regulatory model. As soon as this week we will invite key actors, associations and experts to the first working meeting on this topic”, - commented the finalization of White Paper the NBU First Deputy Governor Kateryna Rozhkova.


The regulatory model has two main objectives: to find new growth areas for each segment of the non-bank financial market and the maximum protection of financial services consumers. The project takes into account the high segmentation and heterogeneity of actors on these markets, both in size and type of products and services. It offers the most flexible approach to non-bank financial institutions licensing, reporting and supervision.


“The main innovation for market participants will be a risk-oriented approach, which we have been successfully applying for the third year in the banking market. It will make it possible to forecast problems in companies and take preventive measures, rather than react when the company becomes insolvent. We are also focused on the introduction of corporate governance standards that will improve companies performance, and consumer rights protection,” said Kateryna Rozhkova.


The NBU is convinced that the new model of regulation of non-bank financial institutions should be aimed at achieving the efficiency and transparency of the market, as well as at bringing non-bank financial services received by Ukrainian consumers closer to the best European standards.


Regulatory guidance in the draft White Paper has been developed by a working group of the NBU, together with USAID’s Transformation of the Financial Sector project experts.


The draft regulatory model is available at link. Please, send your comments on the draft document at: before 22 November 2018.


[go back