The National Bank of Ukraine has completed the centralization of functions in Ternopil and Zhytomir oblasts by transferring these functions to the regulator’s head office in Kyiv. On 1 February 2017, NBU Board Decision No. 62-D was issued to this effect.
The process of centralizing the NBU functions and a departure from the structure that included a network of regional offices was launched back in 2015 in all regions of Ukraine. Until then, all the functions performed by the central bank’s head office duplicated those of the regional offices. With the launch of the process of centralizing the NBU functions in 2015, the functions performed by the regulator in the regions were limited to two functions, including ensuring cash circulation and supporting the operation of “One-stop-shop” divisions that deal with individuals and legal entities. Presently, the regulator centralizes the functions in the following manner:
- Cash circulation will be controlled by the head office located in Kyiv.
- Cash circulation in Ternopil and Zhytomir oblasts will be handled by the respective NBU subdivisions located in other regions of Ukraine. The decision to delegate the functions related to the handling of cash circulation was taken in accordance with the Policy on Cash Circulation in Ukraine adopted by the NBU Board on 11 August 2016.
- At the same time, individuals and legal entities in Ternopil oblast will be able to apply to the NBU through the respective “One-stop-shop” divisions located in Lviv, while individuals and legal entities in Zhytomir oblast will be able to contact the respective “One-stop-shop” divisions located in Kyiv by regular mail or e-mail.
The centralization of the NBU functions will result in the lay-off of 74 NBU employees employed in the Ternopil and Zhytomir regional offices. Some staff will be relocated to the NBU’s head offices or other regions should there be vacancies available and if the employees have qualifications and work experience that meet the vacancy requirements.
The centralization of the NBU functions is part of the internal organizational transformation of the central bank. The internal transformation of the NBU mainly aims to enhance the institutional capacity and create a European modern central bank. This move will boost the NBU’s ability to regulate the banking sector, promote its development, and ensure a more transparent and secure use of financial services by consumers.