The National Bank of Ukraine (the NBU) has revised approaches to payment systems oversight in Ukraine in line with IMF and World Bank recommendations.
In particular, the NBU:
- continued implementing international oversight standards according to recommendations received from the IMF mission and the World Bank:
- established the assessment frequency for systemically important payment systems (SIPSs) of not less than once every two years
- launched comprehensive assessment for nonsystemically important payment systems of the Ukrainian banking sector and that were established by the NBU
- introduced publication of reports based on the assessment results of SIPS under the form prescribed by the international standards (Disclosure framework for FMI)
- enhanced SIPS oversight in order to establish risk-based oversight:
- established requirements for SIPS operators systemically important in terms of ensuring cyber robustness based on the oversight documents of the Bank for International Settlements and the European Central Bank
- improved NBU compliance control of the SIPS operators with the action plan based on the assessment results
- established SIPS monitoring in accordance with the indicators set by the NBU
- streamlined the procedure for implementing requirements to the SIPS operators
- eased requirements to the SIPS operators with at least three participants in line with the global approaches
- optimized requirements to documents of the SIPS operators. Hence SIPSs are permitted to release information about the risk management system, the regulatory control mechanisms etc. both in payment system rules and internal documents. In addition, the SIPS operators are no longer obliged to submit internal documents to the NBU. Such documents shall be submitted only at the NBU’s request
- canceled individual requirements for oversight of payment systems created by nonresidents, since such systems are overseen entities of central banks of countries, where the payment system was incorporated
- defined the criteria and procedure for the systemically important payment service providers
- intensified requirements to control of payment system participants by the payment system operator
- obligated payment system operators and participants to control payment service providers of this payment system etc.
The respective amendments were approved by NBU Board Resolution No. 11 On Amendments to Regulation on Supervision (Oversight) of Payment Systems and Settlement Systems in Ukraine dated 21 January 2020. This document comes into effect on 31 January 2020.
For reference: Oversight is a central bank function aimed at safe and efficient performance of financial market infrastructures.