The National Bank of Ukraine welcomes the adoption of the Law of Ukraine On Amendments to the Tax Code of Ukraine and Some Other Laws of Ukraine with Regard to the Specifics of Resolving a Systemically Important Bank under Martial Law (the Law).
The Law introduces an effective and overarching (covering all systemically important banks) legal mechanism for solving potential crises of systemically important banks driven by the war, while prioritizing the maximum protection of interests of the state and the banks’ clients. In particular, in order to simplify the general bank resolution procedure, which is cumbersome for current conditions, the procedure of resolving a systemically important bank has been optimized for the case if such a bank loses liquidity while martial law is in effect in Ukraine. The Law also describes the specifics of the state’s participation in the procedure for resolving such a bank.
As a reminder, a systemically important bank is a bank whose activity has an impact on the stability of the entire banking system. The regulator gives particular attention to systemically important institutions in order to safeguard financial stability.
“The NBU’s main priority is to ensure protection of interests of the state and banks’ clients – individual depositors and Ukrainian companies – who continue to work and pay taxes in current unprecedented conditions. Taking into account the continuing russian aggression against Ukraine and related potential risks to the financial system, the changes introduced to the Law of Ukraine On Amendments to the Tax Code of Ukraine and Some Other Laws of Ukraine with Regard to the Specifics of Resolving a Systemically Important Bank under Martial Law provide a risk minimization instrument that can be used when needed. This will support the financial sector’s resilience and help cope with the challenges of war,” underlined NBU Deputy Governor Yaroslav Matuzka.
The NBU designates systemically important banks on an annual basis after reviewing data as of 1 January, in accordance with the Regulation on the Procedure for Identifying Systemically Important Banks approved by NBU Board Resolution No. 863 dated 25 December 2014 (as amended).
The list of systemically important banks was approved by NBU Board Decision No. 120 On Identifying Systemically Important Banks dated 9 March 2022.