The National Bank of Ukraine (NBU) has strengthened the responsibility of banks for non-compliance with the requirements for establishing effective risk management systems.
Thus, the NBU will be entitled to limit, stop, or suspend certain types of a bank’s operations whenever its risk management system is recognized to be ineffective. That decision will be based, in particular, on the viability assessment of the bank’s business model, the analysis of actual and forecast data on the balance sheet provided by the bank, as well as its P&L statements, operations with related parties, and regulatory capital components.
The aforementioned amendments to the Regulation On the Application by the National Bank of Ukraine of Corrective Measures were introduced by NBU Board Resolution No. 98 dated 7 September 2018, which comes into effect on 11 September 2018.