The National Bank of Ukraine starts publishing information on the composition of banking groups. The publication of this information is in accordance with the requirements of Law of Ukraine No. 629-VIII of July 16, 2015, On Amendments to Certain Legal Acts of Ukraine (with regard to streamlining the household deposit guarantee scheme and the resolution of insolvent banks).
Under this Law, apart from banks and financial companies, a banking group shall include companies that are not classified as financial companies but their principal activity is the provision of financial services (for instance, a leasing company). The provision of financial services shall be deemed the prevailing activity of the company if revenues arising from the rendering of financial services are equal to or exceeds 50% of the total net operating income reported by the company in the previous reporting year.
With a view to ensuring the stability of the banking system and mitigating the banking groups’ risk exposure, additional supervision shall be exercised. The consolidated financial statements of the Banking Group shall be compiled based on the financial statements of the participating banks.
In addition, the National Bank of Ukraine is entitled to set requirements to the banking group on the consolidated and sub-consolidated basis regarding the availability of an efficient system of the corporate governance, risk management, regulatory capital adequacy and prudential ratios, etc. The limits and restrictions might be set regarding certain types of activities, including with regard to the activities on the territory of other countries.