Speaking at a press briefing held to mark his first 100 days in office that was attended by journalists covering banking sector issues, Governor of the National Bank of Ukraine Stepan Kubiv said that the National Bank of Ukraine had devised the draft Strategy for banking secto0r reforms for the period up to 2020 (hereinafter – the Strategy) and was set to consider and adopt this document at the session of the National Bank of Ukraine Board to be held in the coming days.
According to him, the National Bank of Ukraine had devised the Strategy in cooperation with international experts that would also provide support and assistance in implementing it. In broad terms, the Strategy is aimed at undertaking reforms to the central bank and the banking sector as a whole.
Mr Stepan Kubiv said the banking sector reform was mainly aimed at securing the financial soundness of the banking sector and achieving macroeconomic stability both in the short term and in the long run, stepping up banks' efforts to raise funds in the domestic and international markets to stimulate economic growth, making further efforts to apply EU standards and practices to the operation of Ukrainian banking system, improving the banking supervision on a consolidated basis, enhancing the protection of depositors, creditors and consumers of banking services, developing financial markets and improving the banking market infrastructure to develop the diversified financial system.
Mr Stepan Kubiv also told the journalists about his main achievements in the past three months since he took office.
He emphasized that the central bank had managed to ensure the transparency of the refinancing mechanism available for banking institutions. The regulator is currently maintaining a constructive dialogue with the banking community while pursuing a parity-based policy with respect to banks, regardless of the category. At the same time, the National Bank applies enforcement measures to those banks that carry out speculative transactions in the foreign exchange market.
Active cooperation with international investors (the IMF, the EBRD, the IFC, etc.) helped Ukraine receive substantial financial assistance, implement a set of financial sector reforms and replenish its gold and foreign exchange reserves. In addition, in order to adhere to the principles of social responsibility, the National Bank has implemented cuts to investment expenses and cut down other expenses. The National Bank of Ukraine in cooperation with banks is currently devising schemes designed to support the borrowers conscripted in the Ukrainian army.
Governor of the National Bank of Ukraine Stepan Kubiv emphasized the need to extend the mandate of the Deposit Guarantee Fund that would enable it to detect the problems faced by banks.