The National Bank of Ukraine (NBU) has for the first time in its history won the prestigious international Transparency Award, which is sponsored by the Central Banking Journal, a publication that covers issues concerning the operation of central banks and financial regulators. The award ceremony will take place in London, UK, on 13 March this year.
“From the day it took office, our team has prioritized the development of an open, transparent culture that would live up to existing transparency standards, and we take tremendous pride in receiving this award in recognition of our efforts. Transparency and dialogue with clients and partners play an important role in helping us achieve our goal as a central bank, which is to ensure price and financial stability intended to facilitate sustainable economic growth and prosperity for all Ukrainians. Consistency of communications, accountability, and clarity of intentions are at the core of everything we do, and we will continue to focus on these priorities, learning from our colleagues in the global community of central banks along the way,” emphasized NBU Governor Yakiv Smolii.
The NBU has Ukraine has made impressive efforts to improve its transparency under governors Yakiv Smolii and Valeria Gontareva, according to Christopher Jeffery, Chairman of the Central Banking Awards Committee and Editor-in-Chief of the Central Banking. “In doing so, the NBU has demonstrated that increased transparency can be an essential part of dealing with difficult circumstances, and is not just a luxury for central banks in advanced economies,” said Christopher Jeffery.
Since 2014, the NBU has faced numerous problems, including the conflict in Ukraine’s east, increased inflation, and a malfunctioning banking system, Central Banking Awards said in a comment. Under these conditions, the central bank was tempted to withhold all information and even make itself less transparent but, inspired by Governors Valeria Gontareva and Yakiv Smolii, opted to do just the opposite. The NBU significantly expanded the scope of information it publishes regarding its operation and is working hard to make this information intelligible and available on time to every interested party, Central Banking Awards said in a statement.
As many other central banks throughout the world, the Ukrainian regulator introduced inflation targeting that requires it to communicate its policies to all stakeholders on a regular basis. But unlike many other central banks, the NBU went out of its way and started publishing a broader scope of information about its activities and transactions. By being proactive in publishing authentic information and engaging the public through social media, the NBU also dealt with the problem of fake news surrounding the banking reform.
Thus, the NBU was able to reboot its external communications system in as little as three years by reprogramming it to prioritize the discharge of the NBU’s central bank mandate. As a result, the NBU’s external communications today serve to make the regulator’s policy more effective by expounding the logic and reasons underlying its decisions, by explaining their impact, and by helping the public, businesses, banks, and other clients and partners make informed decisions. A striking example in that sense was the publication in 2018 of the Strategy of the NBU, which clearly identifies the milestones and directions of the NBU’s medium-term policy.
Be reminded that in 2017, the Transparency Award went to the Central Bank of Ireland; in 2016, to Bank of Canada; in 2015, to the Bank of Israel; in 2014, to Česká národní banka; and in 2013, to Sveriges Riksbank.
Central Banking Awards Press Release: https://www.centralbanking.com/awards/3948671/transparency-national-bank-of-ukraine.
For Reference
Сentral Banking Publications
The British publishing house Central Banking Publications was founded in 1990. Central Banking Publications issues the eponymous Central Banking Journal and a series of whitepapers and administers the annual Central Banking Awards. In addition, Central Banking Publications hosts professional events for central banks and financial market participants.
The Central Banking Journal is one of the world’s top publications for central bankers that is read by people in 130 countries and by professionals at 120 central banks. The Journal’s Editorial Advisory Board includes key figures of the global central banker community such as Jean-Claude Trichet, Ex-President of the European Central Bank and Governor of Banque de France, as well as economists from the world’s top universities, including Yale, Harvard, and Columbia.
Central Banking Awards
Central Banking Awards are a collection of category-specific prizes granted annually by the Central Banking Journal. Central Banking Awards span 26 categories, half of which are intended to recognize central banks’ achievements and successes, and the other half, to acknowledge the accomplishments of financial market participants.
Central banks compete for awards in the following categories: Central Bank of the Year, Governor of the Year, Lifetime Achievement Award, Economics in Central Banking, Transparency Award, Reserve Management Initiative, Currency Manager, Risk Manager, Initiative of the Year, Website, Outstanding Contribution for Capacity Building, Financial Inclusion Initiative, and Payments and Market Infrastructure Development.
Central Banking Transparency Award
Central Banking Transparency Award primarily recognizes a central bank’s successful record of transparency in dealing with a broad range of stakeholders.
To qualify for the Transparency Award, a central bank has to demonstrate proof of significant accomplishments and/or a leadership record characterized by intelligible communications with stakeholders via both internal and external communication channels.
Applications for Central Banking Awards are submitted online. No application fees are required. Winners are selected by the Central Banking Awards Committee, which includes:
- The Central Banking Journal’s editor team
- The Editorial Advisory Board chaired by the Journal’s Editor-in-chief Christopher Jeffery.