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NBU and Bank of Lithuania Sign Memorandum on Insurance Supervision

NBU and Bank of Lithuania Sign Memorandum on Insurance Supervision

NBU Governor Kyrylo Shevchenko and Chairman of the Board of the Bank of Lithuania Gediminas Šimkus have signed a Memorandum of Understanding, Cooperation, and Exchange of Information Related to Insurance Supervision between the NBU and the Bank of Lithuania. 

The Memorandum was signed yesterday at the meeting of the NBU Governor with the Bank of Lithuania’s Chairman of the Board, who was appointed in April of this year. This document is the first international agreement to have been concluded by the NBU as the nonbank financial sector’s regulator. The purpose of this agreement between the two central banks is to cooperate in supervising insurance companies and preventing and combating cross-border insurance fraud. The Memorandum regulates the exchange of information about the performance and development of the insurance sectors in both countries, and about signs of illegal actions by insurance market practitioners on an international level.

"The insurance market is an important element of the financial system that must be transparent and have a high level of trust from both consumers and international partners. In supervising Ukraine’s insurance market, the NBU seeks to use models that have proved effective in the EU market. And I am pleased to emphasize that today we have launched a new direction in our relations with our reliable partner – the Bank of Lithuania – which has been successful in regulating the country’s insurance services market," said Kyrylo Shevchenko during the meeting.

"The Bank of Lithuania has been cooperating with the National Bank of Ukraine and providing expertise and technical assistance for a second decade.  This meeting and the signing of the Memorandum of Understanding in the field of insurance supervision is our another joint step in exchanging experience and best practices as well as implementing effective and transparent financial market supervision based on modern governance principles," said Gediminas Šimkus, Chairman of the Board of the Bank of Lithuania.

Furthermore, at the meeting the parties discussed the economic and financial situation in both countries with regard to COVID-19, corporate governance reform in the banking sector of Ukraine, and cooperation within the EU Twinning project implemented by the Bank of Lithuania and the Narodowy Bank Polski for the NBU. The central bank governors also shared their plans under the strategic pillars of development of their institutions. The parties paid special attention to the development of digital markets and the future landscape of a green financial system, which both regulators prioritize as they pursue their strategic goals.

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