As part of the internal transformation that it is undergoing in order to expand its institutional capacity, the National Bank of Ukraine (NBU) has made changes to its institutional structure.
“The NBU continues its internal transformation towards building a more efficient and optimal central bank model. Modern transparent institutions naturally strive to adopt the most appropriate institutional structures. In the process, the NBU has reorganized the activities of a number of its units without changing staff numbers. This will enable the NBU to fulfill its basic functions more effectively,” said NBU Deputy Governor Roman Borysenko. The NBU’s updated institutional structure is available here.
- The NBU now has the Analytics and SupTech Department
The rapid development of technologies and the improvement of international best practices, including regulations of European supervisory authorities, necessitate the creation and use of new technologies that meet the latest requirements for the risk-based supervision function of central banks. To further enhance its institutional capacity, the NBU has been implementing innovative regulatory and supervisory technologies in banking supervision (RegTech and SupTech), including innovative tools for data collection, processing, and analysis.
To this end, the NBU’s leadership has created the Analytics and SupTech Department, which will ensure the implementation of leading technologies to be used in banking supervision.
The department will include two offices:
- SupTech Office
- Banking System Analytics Office.
The new department’s main functions:
- development and implementation of a strategy for the development of RegTech and SupTech
- maintenance of the NBU Credit Register
- analysis of Ukraine’s banking system
- development of data collection and analysis tools for prudential supervision purposes
- preparation of operating requirements/terms of reference and business requirements for the automation of banking supervision processes, coordination of these requirements with the customer and developer at every stage of implementation, and ensuring the testing of software solutions.
- The NBU has transformed its Related Parties Monitoring Office
Taking into account significant shifts and developments in the system of control of risks of transactions with banks’ related parties, the NBU has reorganized the Related Parties Monitoring Office into a unit within the Banking Supervision Department. This change integrates the processes of monitoring of transactions with banks’ related parties into a unified system of off-site banking supervision in order to enhance the speed and effectiveness of banking supervision in line with the risk-based approach.
- The NBU now has the Financial and Operational Risks Office
As part of implementing an effective internal control system, the NBU has reorganized its Risk Management Department, setting up a new unit – the Financial and Operational Risks Office.
The NBU has established this office based on a former unit in the Risk Management Department. The Financial and Operational Risks Office will operate as an independent unit that reports directly to the NBU Governor. The transformation is driven by the need to distinguish risk control functions (the “second line of defense”) from other operating activities (including the valuation of collateral). The NBU Council has also advised the NBU to improve how it implements risk management processes.
The newly created Financial and Operational Risks Office will perform the same functions that Risk Management Department has fulfilled up until now (financial risks, operational risks), except for the valuation and monitoring of collateral. Meanwhile, the valuation and monitoring of collateral is now the responsibility of the Loan Management Department, which now has a new unit to fulfill this function.
- The NBU has transformed its Strategy and Reforming Department
In order to focus on the implementation of key changes and strategic programs and on the development of the functions of strategic analysis, planning, and business analysis, the NBU has decided to transform the Strategy and Reforming Department into the Strategy and Development Department.
The Strategy and Development Department will continue to operate as a unit that reports directly to the NBU Governor. The reformed department comprises three offices:
- Strategic Analysis and Planning Office
- Strategic Change Implementation Office
- Office for Process and Organizational Management
The unit will focus on the new direction of business analysis and will continue to perform the same functions as the Strategy and Reforming Department:
- collection and analysis of operating requirements for change management
- preparation of business/operating requirements and terms of reference for process automation
- coordination of the above with customers and developers at all stages of implementation.
Serhii Karpenko will continue to lead the reorganized department.
- Olha Lobaichuk has been appointed Head of the Office for the Protection of Consumer Rights in Financial Services
In late May, the NBU launched a new unit called the Office for the Protection of Consumer Rights in Financial Services. The protection of the rights of financial institutions’ customers is a new function within the NBU’s purview. In performing this function, the new unit will set uniform financial disclosure standards for all financial institutions in a complete and understandable format, including in advertising, approve measures to prevent fraudulent behavior of financial market participants, monitor market behavior, respond to disruptions, and communicate directly with the public, including by providing in-depth responses to their requests.
On 1 August, Olha Lobaichuk took office as head of the new unit after she outperformed other candidates in the merit-based selection process. She has been working at the NBU for less than three years, having started out as a project and program manager at the Strategy and Reforming Department. She gained most of her experience as an auditor at the Big Four. She began her career at KPMG, leading audit teams that audited banks, insurance companies, collection companies, pharmaceutical companies, and agro holdings. At PwC, she audited public sector entities, including a state-owned bank and a state-owned company.