The National Bank of Ukraine has put its 2019 Action Plan into the public domain. The Action Plan is a roadmap for implementing the central bank’s mid-term strategy in the current year.
Approved and unveiled in the spring of 2018, the Strategy identifies seven key goals of the NBU. By putting this document into the public domain, the NBU as a modern, open, independent and effective central bank, has publicly committed itself to do all it can, in order to deliver low inflation, ensure the banking system is stable, transparent, and effective, revive lending, and to promote the effective regulation of the financial sector, free movement of capital, and financial inclusion.
In particular, in the current year, the NBU will continue to be involved in efforts to achieve these objectives, in order to create a favorable environment for financial ecosystem participants – from banks to businesses, and from financial services consumers to those who have no access to such services.
The 2019 Action Plan assesses the progress achieved last year in implementing the strategy, and contains a clear-cut list of the regulator’s actions and key activities, as well as an analysis of internal and external risks that could prevent the NBU from implementing the said measures. Each of these actions and activities has a deadline and assesses what effects the implementation of these measures will have on the financial ecosystem.
That said, the NBU is also a financial ecosystem participant, meaning that its ability to meet strategic goals often directly depends on the actions taken by other participants. The NBU is open to constructive cooperation with all stakeholders who are its customers, and encourages all of them to join efforts to develop the Ukrainian economy and financial system.
“It goes without saying that we cannot, on our own, travel all the way to a sustainable economy and a developed and stable financial system. Doing so requires that the NBU operates in conjunction with you: banks, businesses, government agencies, the expert community, and the media,” said the NBU Governor Yakiv Smolii, as he presented the action plan in a meeting with the central bank’s customers and partners.
The Action Plan says that meeting the NBU’s strategic goals requires the absence of substantial shocks in the internal and domestic environments. If the outlined risks materialize, they could threaten the NBU’s ability to implement the Action Plan.
“In particular, the ability to curb inflation and to deliver the free movement of capital is contingent on the health of the global economy, whether or not there is protectionist sentiment in the world, movements in commodity prices, and investors’ interest in developing economies. Meanwhile, an escalation of the external military aggression could threaten not only potential achievements but also previous ones,” the document says. According to the NBU potential risks also include a weakening interest in developing economies, and capital outflows from those countries, as well stronger labor migration from Ukraine.
Full version of the Action plan for 2019 in English will be published soon.