The Board of the National Bank of Ukraine has approved a concept for reforming a decision-making framework at the level of committees and its implementation plan, under which 9 special committees will have become operational by the end of October 2015.

“For the first time, the National Bank of Ukraine Board gets the right to delegate some of its powers to separate committees. Thus, we are moving from an individual decision-making framework to a collegial decision-making framework in which decisions are made by the committees.  This will enhance the quality of the decision-making process, improve the Board's efficiency, and also create the conditions enabling cross-functional sharing of information and analysis findings.  The structure of committees covers all the main lines of activities of the National Bank that require collegial  decisions,” said Deputy Governor of the National Bank of Ukraine Vladyslav Rashkovan.

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 already been established and are operational:  The Change Management Committee, Monetary Policy Committee, Financial Stability Committee, Credit Committee, Committee on Assets and Liabilities Management, and the Competitive Bidding Committee. The Committee on Banking Regulation and Supervision and Oversight of Payment Systems. In addition, the Budget Committee and the Committee on Operational Risks and Business Continuity Management will soon be set up.

The committees are established based on the clear principles governing the separation of lines of activities and the segregation of duties among the Board members. Each Board member has the right to attend meetings of all the committees, but is entitled to be a member of only 2-5 committees.  Thus, the Monetary Policy Committee is an advisory body. Following meetings of the Monetary Policy Committee, meetings of the Board of the National Bank on monetary policy issues take place, where final decisions are made.

At this, the following two committees are authorized to make final decisions within the limits of their competence: The Committee on Assets and Liabilities Management and the Committee on Banking Regulation and Supervision and Oversight of Payment Systems. Other committees have an advisory capacity, meaning that the decisions they make become effective only upon approval of the Board of the National Bank.

The concept has been developed drawing on best international practices in central banks' decision-making, including that of the European Central Bank, Bank of England, and the Central Bank of Ireland. 

In accordance with amendments to the Law On the National Bank of Ukraine, the National Bank shall have the right to set up special committees to which it will delegate the respective powers.

From November 1, 2015, the decision-making framework at the level of committees will operate at the National Bank under a new model.