The National Bank of Ukraine (the NBU) continues to take steps aimed at easing requirements to banks during the quarantine and restrictive measures related to the COVID-19 outbreak caused by the new coronavirus.
During the quarantine and restrictive measures, the NBU exempted bank managers and candidates for managerial positions in banks and nonbank financial institutions from in-person fit and proper testing. Candidate interviews will be held via video conferences.
During the period, nonbank financial institutions and other entities are allowed not to submit paper documents to the NBU subject to their submission in electronic form via e-mail (electronic document flow system) to the NBU with an authorized electronic signature.
Also, the NBU extended the implementation period for requirements under Regulation No. 97 On Establishing the Process of Problem Asset Management in Ukrainian Banks. In particular, the NBU extended the period for banks to develop and approve their strategy of problem asset management and their operational plan. However, before 30 April 2020, banks are required to develop their plan of dealing with problem and foreclosed assets recognized by banks as of 1 March 2020. Deadline for full implementation of the Regulation’s requirements is moved to 30 November 2020.
Additionally, the NBU extended for four months the implementation period of risk appetite statement by banking groups under Resolution No. 64 On the Establishment of a Risk Management System in Ukrainian Banks and Banking Groups.
Moreover, in 2020, the following provisions are stipulated for the development and submission of business recovery plans under the Regulation On Business Recovery Plans of Ukrainian Banks and Banking Groups, approved by NBU Board Resolution No. 95:
- banks are allowed to apply only one stress scenario instead of three. However, such stress scenario has to factor in the lengthy adverse economic effect of spread of the COVID-19 acute respiratory disease in Ukraine
- deadline for bussiness recovery plans submission for banks that are not systemically important was moved from 1 October 2020 to 20 December 2020.
Said amendments were approved by NBU Board Resolution No. 46 On Specifics of Application of Requirements of Certain Regulations and Amendments to Certain Regulations of the National Bank of Ukraine Due to Quarantine and Imposed Restrictive Measures, dated 3 April 2020.
The Resolution enters into force on the day following its official publication.