On 13 April 2016, the Board of the National Bank of Ukraine issued Resolution No.261 On Amendments to the Regulation on the Rules Governing the Registration and Licensing of Banks, Establishment of Separate Units.
The revised rules have specified the requirements to business reputation and allowed banks to petition the regulator to waive some requirements for impeccable business reputation applying to the person to be appointed as CEO of a bank.
This procedure has been initiated by the business community in response to the tough rules put in place by the NBU in June 2015 to restrict access for ex-CEOs of insolvent and liquidated banks to the banking sector. The NBU has taken into account the proposals put forward by banking associations and banks and revised the rules to include a provision allowing for the assessment of business reputation on a case-by-case basis upon the request of a bank employer.
The NBU underlines that procedure will be applied in exceptional cases if there are enough documents and evidence to prove that a person has an unblemished business reputation. Experts from the NBU banking supervision units and the Deposit Guarantee Fund will be deployed to assess business reputation on a case-by-case basis. The final decision will rest with the Committee on Banking Regulation and Supervision and Oversight of Payment Systems.
The amendments, inter alia, have:
- Established a list of documents that a bank is required to submit if the authorized capital is increased using funds raised as subordinated debt.
- Specified the assessment procedure for evaluating the financial standing of individuals;
- Expanded the list of persons subject to oversight exercised by the NBU to verify whether or not they comply with the requirements for business reputation during their tenure of office as CEOs of banks as mandated by applicable Ukrainian laws;
- Established a new form of notification of state registration of the amendments to the bank by-laws.
The Resolution enters into force on the day following its official publication.