- Sustainable hryvnia
- Sustainable public finances
- Reinforcing the long-term sustainability of the pension system
Strategy of Ukrainian Financial Sector Development
The National Bank of Ukraine (NBU), the National Securities and Stock Market Commission (NSSMC), the Ministry of Finance of Ukraine (MoF), and the Deposit Guarantee Fund (DGF) developed a new Strategy of Ukrainian Financial Sector Development, focused on resisting russian aggression and restoring the country. The strategy was approved by the Financial Stability Council on July 19, 2023 and replaced the pre-war Strategy of Ukrainian Financial Sector Development until 2025.
The strategy of financial sector development is based on the current context, takes into account high risks and uncertainty, and factors in the effects of the russian invasion on the environment in which the financial system operates.
The Strategy sets common priorities for regulators of the financial system that will enable the coordination of actions for ensuring the country’s financial resilience and the development of financial inclusion and accessible and barrier-free financial services.
The implementation of the Strategy will lay the groundwork for the sustainable and dynamic development of Ukraine’s financial sector and its competitiveness amid progress towards EU accession and integration into the global financial space. It will create conditions for reinforcing Ukraine’s potential on its way to victory and will contribute to the start of transformations needed for the reconstruction and growth in the national economy both during and after the full-scale war.
Vision of the ukrainian financial sector: The financial sector of Ukraine is stable, efficient, competitive, integrated into the global environment, and capable of meeting challenges, developing, and contributing to the recovery of the Ukrainian economy.
Mission of the financial sector of Ukraine: The regulation of the financial sector ensures the accumulation, distribution, and circulation of financial resources on the basis of financial stability, inclusion, cybersecurity, and the spread of cutting-edge technology to promote the recovery of Ukraine's economy and support the well-being of its people.
Regulators of the Ukrainian financial sector and the DGF presented the Strategy on 29 August. The Strategy has been developed within the framework of the Financial Stability Council since May 2023. The Strategy was approved by regulations of institutions that developed it, in line with the established procedure. At the NBU, the Strategy was approved by NBU Board Decision No.299 dated 29 August 2023.
The Strategy is based on and takes account of relevant measures of the Strategy of Ukrainian Financial Sector Development until 2025 (terminated in 2023). The results of the latter can be found by going to the link.
The NBU is open to discussions and continues to gather proposals for the next revision of the Strategy at its e-mail address: [email protected]
Strategic directions of development
The Strategy aims to implement five strategic goals: macroeconomic stability, financial stability, the financial system operates for the country’s recovery, modern financial services, and the institutional capacity of regulators and the DGF.
GOAL I. Macroeconomic stability
GOAL II. Financial stability
- Harmonization of regulatory approaches
- Balanced regulation and supervision oriented on development of financial institutions
- Balanced regulation and supervision oriented on development of capital markets
- Sustainable and capable capital markets
- Development of state-owned financial institutions
- Creation of a comprehensive system for recovery and resolution of failed participants
- Enhancing sustainability and efficiency of guarantee schemes for deposit and investment
GOAL III. Financial system operates for the country’s recovery
- Support and development the economy
- Development of sustainable financing
- Developed capital markets infrastructure
- Introduction of new financial instruments and improvement of existing ones
- A responsible and inclusive financial market
- Recovery of the financial sector
GOAL IV. Modern financial services
- Development of infrastructure for digital financial services
- Automation and paperless technologies in provision financial services
- Regulation of virtual assets
- Digital defense of the financial sector
- Financial infrastructure recovery
GOAL V. Institutional capacity of regulators and the Deposit Guarantee Fund
- Ensuring uninterrupted operation of regulators and the DGF
- International cooperation Improving the operational efficiency of regulators and the DGF
- Integral and comprehensive IT infrastructure for public authorities
- Increasing the institutional capacity and financial independence of regulators and the DGF
The Working Group on Financial Development under the Financial Stability Council is the monitoring and controlling body for the Strategy implementation. Deputy heads of the financial sector regulators and the DGF participate in the Committee. The unified center for monitoring and control over the implementation of the Strategy allows coordinating the activity of members, determining joint areas of implementation of projects, and applying a transparent decision-making mechanism and uniform standards of project management.
Useful Materials
Publications, interviews
Financial Development Working Group
The Financial Stability Council resolved at its 13 December 2019 meeting to establish a The Working Group on Financial Development (the Committee) under the Financial Stability Council. The functions and composition of the Committee were updated in accordance with the decision of the Council in May 2023.
The main tasks of the Committee are the following:
- identifying the directions and priorities for the implementation of the Strategy for Ukraine’s Financial Sector Development
- facilitating the coordinated implementation of the measures stipulated in the Strategy for Ukraine’s Financial Sector Development; monitoring the effectiveness of their implementation
- consideration of proposed action plans for the financial sector development.
A communication platform was established at the Committee. It involves participation of the market representatives and field experts.
Meetings of the Committee and the communication platform are held as needed.
Governor:
- Kateryna Rozhkova, First Deputy Governor of the National Bank of Ukraine
Deputy Governor:
- Denys Uliutin – First Deputy Minister of Finance
Council members:
- Iraklii Baramiia – member of the National Securities and Stock Market Commission
- Olga Bilai – Deputy Managing Director of the Deposit Guarantee Fund
- Yurii Draganchuk – Deputy Minister of Finance of Ukraine
- Maksym Libanov – member of the National Securities and Stock Market Commission
- Andrii Olenchyk – Deputy Managing Director of the Deposit Guarantee Fund
- Oleksii Shaban – Deputy Governor of the National Bank of Ukraine
- Nadiia Bihun – Deputy Minister of Economy of Ukraine
- Oleksii Sobolev – Deputy Minister of Economy of Ukraine for Digital Development, Digital Transformation, and Digitalization.
Secretary:
- Arsen Makarchuk, Director of the NBU Strategy and Development Department.
Strategy of Ukrainian Financial Sector Development until 2025 (discontinued 2023)
The National Bank of Ukraine (NBU), the National Securities and Stock Market Commission (NSSMC), the Ministry of Finance of Ukraine (MoF), and the Deposit Guarantee Fund (DGF) implemented the Strategy of Ukrainian Financial Sector Development for 3.5 years.
Fintech development in Ukraine
In July 2020, the NBU approved the Fintech Development Strategy in Ukraine until 2025 (Fintech Strategy), which is a step-by-step plan for creating in Ukraine a full-fledged fintech ecosystem that will offer innovative financial solutions and accessible digital services.
The Comprehensive Program for the Development of the Financial Sector Until 2020
The National Bank of Ukraine (NBU) designed the Comprehensive Program of Ukrainian Financial Sector Development Until 2020 to achieve the sustainable development of the financial market in 2015-2019 years.