The National Bank of Ukraine (NBU), with the aim to increase the transparency of the banking sector, is opening its webpage Systemically Important Banks on the official website in the section “Supervision. Banking Supervision.”
The new webpage contains detailed information on systemically important banks, particularly the following:
- definition of the term “systemically important bank” (hereinafter SIB)
- reasons for the regulator’s special attention to SIBs
- the list of requirements to systemically important institutions
- methodology and stages of identifying SIBs
- the current list of the systemically important banks and the timeline of its changes
- infographics for the share of SIBs in the market
- useful links to the regulations, etc.
Pursuant to the Regulation on the Procedure for Identifying Systemically Important Banks, the NBU identities systemically important banks annually based on the data as of 1 January. The methodology for identifying SIBs is based on the European Banking Authority (EBA) Guidelines.
Activity of a systemically important bank has an impact on the stability of the entire banking system. Improper operation or failure of a SIB can inflict damage on the financial system and have an adverse impact on the economy in general. Therefore, the regulator’s special attention to systemically important institutions is necessary for safeguarding financial stability.
For your information, the current list of systemically important banks that comprises 13 financial institutions was approved by NBU Board Decision No. 76 On Identifying Systemically Important Banks dated 26 February 2021.