The National Bank of Ukraine has streamlined the procedure for reorganization of banks through mergers in accordance with the Law of Ukraine  On Simplifying Capitalization and Reorganization Procedures for Banks.  This move will enable banks to shorten significantly the duration of the reorganization process, including by speeding up the document review process by the regulator.

In particular,  the procedure for reorganization of banks through mergers will proceed as follows:

• banks involved in the reorganization process shall submit documents  required to obtain a preliminary opinion from the NBU as to the approval of the draft of the bank reorganization plan.
• Following the issue of the preliminary opinion by the NBU,  supervisory boards convoke the General Meeting of participating banks  to make a decision on the merger, approve the reorganization plan and the merger agreement;
• upon the request of participating banks, the NBU issues a permit for the reorganization within three business days and publishes information about the reorganization of banks on its website; and
• after securing the approval from the NBU, the reorganization of banks through mergers is carried out under the simplified procedure.

Therefore, the NBU will make a final decision on the approval of the reorganization of banks at the planning stage rather than at the implementation stage. This approach will shorten the procedure for reorganization of banks through mergers on average from one and a half year to three months.

The amendments to this effect are provided for by  NBU Board  Resolution No. 48 of 8 June 2017 On Approval of Amendments to the Regulation On Peculiarities of Bank’s Reorganization upon Decision of the Bank Owners, which shall come into effect from 10 June 2017.