Speaking at a conference arranged by the Bank European for Reconstruction and Development, First Deputy Governor of the National Bank of Ukraine Oleksandr Pysaruk reassured foreign investors that the economic integration of Ukraine into the pan-European economic system and cooperation with foreign investors are top priorities of the Government and the National Bank of Ukraine.
He highly appreciated efforts by foreign investors to support the key areas of Ukraine's economy and noted that our country is moving towards the creation of legislation designed to protect the interests of foreign investors and creditors, the anti-corruption legislation and the development of domestic capital market and this process is irreversible.
"We are aware of the fact that along with economic gains, the protection of investors' interests is matter of crucial importance for investors. The difficult situation in Ukraine generates a number of risks that primarily hit the economy and the financial system. However, it is obvious that the situation is kept under control and these risks are temporary," said Oleksandr Pysaruk.
He put emphasis on the fact that the National Bank of Ukraine's main task is to ensure the smooth operation of the banking sector in today's challenging conditions. To this end, the National Bank of Ukraine is engaged in active cooperation with the EBRD; joint consultations are being held to address issues related to improving the process of banks' reorganization, and restructuring, supporting the banking sector's liquidity and increasing the capital by certain banks, developing small and medium-sized business, resuming and stimulating lending to the private sector, etc.
"The worsening economic situation in Ukraine had its toll on the performance of the banking system. Nonetheless, the National Bank is capable of ensuring Ukrainian financial sector stability and undertaking fundamental financial sector reforms and purging the financial system," said Oleksandr Pysaruk. In addition, as envisaged by the Memorandum entered into with the International Monetary Fund, the diagnostic studies of 35 largest banks by assets are proceeding to completion.
Overall, the National Bank of Ukraine consistently takes measures aimed at establishing a stable and efficient banking system in Ukraine. Thus, the regulator has raised the minimum regulatory capital requirements to UAH 500 million and approved a schedule for increasing regulatory capital spanning 10 years. Work is currently under way to address issues related to banking supervision over systemically important banks and issues related to improving corporate governance in banks. The regulator provides liquidity support to banks and pushes ahead with efforts to devise the Strategy for reforming the banking system for the period spanning 2020.
"Our key task is to establish a stable banking system that would serve as a driver of economic growth, emphasized First Deputy Governor of the National Bank of Ukraine Oleksandr Pysaruk. – We are steadfastly committed to this task and invite foreign investors to join our efforts, for the Ukrainian central bank is open to a dialogue".