Today, on July 10, 2015, the Law of Ukraine On Amendments to Some Laws and Regulations of Ukraine concerning the NBU Institutional Capacity Building came into force.
In accordance with the new law, the Board of the National Bank shall be a collegial body comprising 6 persons: the Governor of the National Bank, First Deputy Governor and deputies of the NBU Governor. The Governor of the National Bank shall be at the head of the National Bank Board.
Thus, by virtue of these amendments, and as provided by Order of the National Bank of Ukraine No.180-оd of 10 July 2015 declaring some Orders of the National Bank of Ukraine invalid, the Board of the National Bank of Ukraine shall comprise, effective from today, Governor of the National Bank of Ukraine Valeria Gontareva, First Deputy Governor Oleksandr Pysaruk, Deputy Governors Vladyslav Rashkovan, Yakiv Smolii, Dmytro Sologub, and Oleh Churii.
When it comes to the exercise of the core functions by the National Bank of Ukraine, the responsibilities shall be divided among Deputy Governors in the following manner. Oleksandr Pysaruk shall be responsible for prudential supervision, financial monitoring and risk management. Dmytro Sologub shall be responsible for the monetary policy, financial stability and the banking sector statistics. Oleh Churii shall be in charge of market operations (carried out in the foreign exchange and funding markets). Yakiv Smolii shall be responsible for cash and non-cash circulation. Vladyslav Rashkovan shall oversee finances, banking system reforms and the transformation of the regulator.
In accordance with amendments to the Law, and with the aim of adding value to the decision-making process, the Board of the National Bank shall have the right to set up special committees to which it will delegate the respective powers. This enables exchange of information and sharing of analysis findings, makes it possible to share the burden of responsibilities among the Board members, and makes their work more efficient.
The committees are divided into three groups by their functions: strategic level (policy making), tactical level (policy execution) and support. As part of the transformation of the regulator, the following committees have been established and are operating at the National Bank of Ukraine: The Monetary Policy Committee, Financial Stability Committee, Credit Committee, Committee on Assets and Liabilities Management, and the Competitive Bidding Committee. The following committees are planned to be established – The Supervision Committee, Budget Committee, Change Management Committee, and the Operational Risks Committee. Therefore, the committee will cover all the core functions performed by the National Bank of Ukraine that will need to go through the collegial decision-making process.
Governor of the National Bank of Ukraine Valeria Gontareva said: “For the first time, the National Bank of Ukraine Board gets the right to delegate some of its powers to separate committees. Thus, the management system is being transformed from making individual decisions to the decisions made by the committees, which brings the regulator closer to the best practices of world central banks. With the National Bank of Ukraine undergoing a scheduled transformation of its governance system, these qualitative changes in the work of the Board of the National Bank of Ukraine represent an important step toward strengthening the independence of the regulator and making it more efficient”.