The National Bank of Ukraine (NBU) has partly revised its hierarchy and respective distribution of related units, including chains of command assigned to members of the NBU Board.
What are the changes?
- A new chain of command, Financial Sector Regulation, was established. This line will cover the Banks Regulation Methodology Department, the Nonbank Financial Institutions Regulation Methodology Department, the Office for Protection of Consumer Rights in Financial Services, and the Department of the Corporate Nonstate Pension Fund of the NBU.
Kateryna Rozhkova, First Deputy Governor of the National Bank of Ukraine, shall assume general management and control over Financial Sector Regulation.
- Prudential Supervision is integrated in the General block. Consequently a new line, Prudential Supervision and General Issues, was established. This line will incorporate departments of Banking Supervision, Onsite Inspections, Licensing, Financial Monitoring, Analytics and SupTech, and Supervision of Nonbank Financial Services.
Kyrylo Shevchenko, NBU Governor, shall assume general management and control of Prudential Supervision and General Issues.
- Nonbank Financial Institutions Regulation Methodology Department of the Monetary Stability line shall be transferred to the newly established line Financial Sector Regulation.
As before, Dmytro Sologub, NBU Deputy Governor, shall assume general management and control of Monetary Stability.
- The Strategy and Development Department shall be integrated in Payment Systems and Cash Circulation.
As previously, Oleksii Shaban, NBU Deputy Governor, shall assume general management and control of this line.
The Market Operations and the Finance, Administration, and Operations retained previous unit distribution. As before, NBU Deputy Governors, Yurii Heletii and Yaroslav Matuzka shall remain in charge of these lines respectively, as before.
Reasons behind revision
The need to revise the central bank’s hierarchy is dictated by the extension of the NBU’s mandate to cover regulation of the nonbank financial market.
The regulator should separate the methodological support and the legal framework of regulation of nonbank financial market participants from the respective supervisory function*. Similarly, this principle was applied to banking market participants.
In this context, the NBU devised a new line of hierarchy, Financial Sector Regulation, to provide methodological support of participants of the bank and nonbank financial markets. At the same time, the supervisory function as to participants of the said markets will be assigned to units of Prudential Supervision and General Issues.
The revised distribution of chains of command will improve operation of each line.
The respective decision was approved yesterday, on 20 October 2020, at the regular meeting of the NBU Board.
* In line with the Law of Ukraine On Amendments to Certain Laws of Ukraine On the Consolidation of Functions of the State Regulation of the Financial Services Markets