On December 15, 2014, the National Bank of Ukraine hosted a meeting with CEOs of the largest Ukrainian banks. The meeting was focused on the development of the banking sector and the situation in the interbank foreign exchange market.

As was announced last week, Acting Deputy Governor of the National Bank of Ukraine Vladyslav Rashkovan presented the new organizational structure of the regulator.

"Having analyzed the structures of the European banks, we have developed a new organizational structure of the National Bank of Ukraine based on the underlying principles reflecting a focus on formulating a far-reaching vision for the banking system, enhancing the main functions of the central bank, and relinquishing the practice of manual control," he noted.  In particular, the National Bank of Ukraine has cut its next year's budget twice. "The funds saved will be channeled to the State Budget," said Governor of the National Bank of Ukraine Valeriia Gontareva.

In the course of exchanging opinions on the foreign exchange market developments, the bankers pointed out that last week the interbank hryvnia exchange rate had been at the level that suited both importers and exporters, whereas exchange rate fluctuations recorded in the cash segment of the foreign exchange market had been triggered by panicky sentiment. The bankers once again gave their backing to plans to continue the practice of holding auctions for the sale of foreign exchange, which are intended to determine the indicative exchange rate. At the same time, Valeriia Gontareva reminded the meeting participants that FX sales to Naftogaz in no way had a bearing on the exchange rate-setting process. Therefore, the National Bank of Ukraine expects the situation in the interbank foreign exchange market to stabilize.

First Deputy Governor of the National Bank of Ukraine Oleksandr Pysaruk praised the efforts by banks to improve the financial monitoring services. However, he said that money laundering practices and financial malpractices still occur in the banking industry. "We do not want to fine anybody, we want to help. The National Bank is ready to arrange workshops on financial monitoring issues for the employees and senior managers of banks. In most cases, mistakes occur as a result of lack of knowledge of the financial monitoring laws and global financial monitoring practices," explained Oleksandr Pysaruk.