The National Bank of Ukraine pushes ahead with efforts to strengthen its institutional capacity and de-facto independence and enhance its role in the regulation and further development of the financial sector. The Government of Canada and the International Monetary Fund provide technical assistance to the NBU under the Institutional Capacity Building for Effective Policy Making Project to help the central bank to move further down the reform path.
Today, on 10 March 2017, a meeting of the Project Steering Committee was held at the NBU to discuss the progress made by the central bank, plans and identify the project’s future priority areas.
The meeting was attended by NBU Deputy Governor Mr Dmytro Sologub, Head of the Office for European Integration and International Programs Mr Volodymyr Kuchyn, Head of the National Securities and Stock Market Commission Mr Tymur Khromaiev, the Project Manager from the IMF HQ Mr. Stephen Swaray, Resident Project Manager Mr Marko Škreb, First Secretary (Development) at the Canadian Embassy Ms Nadia Yegay, the IMF's Chief Economist Mr Wim Fonteyne and other representatives of the NBU and the Project management team.
Mr Sologub and Mr Khromaiev thanked the Government of Canada, IMF representatives and the Project management team for their assistance in helping the central bank improve monetary policy effectiveness, FX market regulation and banking supervision, enhance the financial stability framework and build the institutional capacity of the stock market regulator.
Mr Sologub pointed out that the NBU follows global trends in the banking and financial sectors. Substantial progress has recently been made progress on the reform agenda and the support provided by the international community has contributed significantly to efforts to build the NBU’s institutional capacity.
Mr Stephen Swaray and Mr Marko Škreb pointed out that with the assistance provided under the institutional capacity-building project, the NBU has made significant progress over the past year in implementing an internal transformation project and pushing ahead with the banking sector reforms. The key project outcomes include:
- further improvements in banking supervision, including credit risk management, stress tests of banks, a review of related party lending exposure reports, introduction of corporate governance in banks based on the Basel principles of corporate governance and the establishment of a Credit Register;
- enhancing monetary policy instruments and open market operations, including by improving efficiency of monetary policy communications, which has contributed to a better a better understanding of the NBU’s monetary policy decisions by the banking sector participants and the public;
- the proper application of IFRS by the NBU, in particular new financial instruments, preparations for the adoption of IFRS 9; and
- implementation of an internal transformation project and further development of the NBU as an institution and its staff.
Separately, the international partners commended efforts by the NBU to coordinate the financial sector reforms implemented jointly with other regulators and public authorities.
The parties have reached an agreement to continue cooperation in the following important areas: the enhancement of banking supervision, monetary policy implementation under inflation targeting framework; further steps to adopt IFRS and preparations for the changeover to IFRS 9; the development of strategic planning to proceed with efforts to create a modern central bank.
The Project will continue to provide support to the NBU and other regulators in implementing reforms agreed under the IMF’s EFF program.
The Project management team also held meetings with the NBU’s senior officials to discuss in detail the achieved results, the Project’s efficiency and identify areas of future cooperation.