The National Bank of Ukraine maintains dialogue with the Parliamentary Committee on Finance and Banking. Four draft laws were on the agenda of today's meeting of the responsible Committee.
- recently registered Draft Law No 6010 On Simplified Procedures of Bank Capitalization and Restructuring;
- Drafty Law No. 2456-D On Amendments to Some Laws of Ukraine regarding improvement of financial services consumer rights protection;
- Drafty Law No. 4866-D On Amendments to Some Laws of Ukraine regarding liberalization of FX operations to promote investments and exports;
- Draft Law No.5592 On the Disclosure of Information in the Stock Market and the Streamlining of the Rules Governing the Issuance of Securities and Expanding the Opportunities to Raise Capital, which is broadly supported by the NBU.
The NBU was represented at the meeting by NBU First Deputy Governor Mr Yakiv Smolii, who voiced the NBU's position on the aforementioned draft laws.
“The NBU fully backs Draft Law No.6010, which was tabled for consideration as the draft law with the same name (registered under No. 5539) was not included in the agenda of the previous parliamentary session. This draft law regulates bank recapitalization and restructuring and proposes to put in place simplified procedures of bank capitalization and restructuring through additional contributions to the authorized capital as well as bank reorganization through mergers. In addition, this draft law draft law would allow banks to cease banking activities without the winding-up of a legal entity, which is not covered by the current legislation,” said Mr Smolii.
The NBU also supports Drafty Law No. 2456-D On Amendments to Some Laws of Ukraine regarding improvement of financial services consumer rights protection, which is currently being prepared for its second re-reading.
In addition, Mr Smolii underlined that the NBU opposes Draft Law No. 4866 intended to amend the Law of Ukraine On the National Bank of Ukraine aimed to limit the range of tools available to the NBU by setting an upper limit on the amount of FX proceeds subject to surrender requirements at 50%. This move could pose a potential threat to the financial stability as it limits the NBU’s ability to use this instrument in crisis situations.
Mr Smolii also reminded the meeting participants that in 2016 the NBU presented a comprehensive framework for new FX regulation a roadmap for its implementation designed to ensure the free movement of capital between Ukraine and the EU. A new model is not only more liberal compared to the current one but also is in line with international practice and commitments undertaken by Ukraine under Directive 88/361/EC on the free movement of capital and the Association Agreement with the European Union.
The NBU First Deputy Governor also proposed to present this concept to members of the Verkhovna Rada Responsible Committee.