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Number of Nonbank Financial Market Players Continues to Decline in May – Results of Licensing and Registration

Number of Nonbank Financial Market Players Continues to Decline in May – Results of Licensing and Registration

The number of nonbank financial market players declined in May from 1,971 (as of 30 April) to 1,963 (as of 31 May).

In May, the National Bank of Ukraine registered seven new finance companies, one credit union, two leasing companies, one pawnshop, and one insurance broker.

At the same time, six finance companies, seven leasing companies, three credit unions, one insurance company, and three insurance brokers were excluded from the registers.

As of now, the nonbank market consists of 172 non-life (previously 173) and 19 life insurers, 289 pawnshops (previously (288), 309 credit unions (previously 311), 141 leasing companies (previously 146), 972 finance companies (previously 971), and 61 insurance brokers (previously 63).

The payments market includes 37 payment systems founded by residents and 14 international payment systems founded by nonresidents.

Approved licensing and registration decisions

The NBU received 420 requests from market participants in May. The largest number of the requests – 296 – concerned finance companies, pawnshops, and lessors. There were 27 requests regarding credit unions and 97 regarding insurers.

The number of requests to cancel all valid licenses of nonbank financial institutions continued to grow in May.

The number of new licenses also dropped, to 12, down from 17 in April.

Based on results of unscheduled inspections, the NBU decided to apply corrective measures to seven insurance companies by revoking (canceling) all licenses to provide financial services in the area of insurance. The corrective measures were applied to IC EIG ALC, IC AFINA-AUTO ALC, IC WEALTH PrJSC, IC MEGA POLIS ALC, IC DOMINANT ALC, IC CHESNO-STRAHUVANNIA ALC, IC HERMES ALC.

As of 31 May, the NBU approved the following decisions: 

  • to approve an increase in a bank’s authorized capital [1]
  • to deny approval of acquiring a qualifying holding with a bank [1]
  • to approve acquiring a qualifying holding with nonbank institutions [16]
  • to deny approval of acquiring a qualifying holding with nonbank institutions [4]
  • to approve bank top managers [10]
  • to deny approval of bank top managers [3]
  • to issue licenses to finance companies [7], credit unions [1], and insurance companies [2]
  • to deny issuing licenses to finance companies [3]
  • to cancel all valid licenses of credit unions [1], pawnshops [2], finance companies [11], insurance companies [2], and leasing companies [5] (upon request)
  • to cancel some of valid licenses of finance companies [12] (upon request)
  • to register finance companies [7], pawnshops [1], and credit unions [1] in the State Register of Financial Institutions; to register lessors [2] and insurance and reinsurance brokers [1]
  • to cancel all valid licenses of insurance companies [7] (enforced)
  • to exclude credit unions [3] and finance companies [6] from the State Register of Financial Institutions; to exclude lessors [7] and insurance and reinsurance brokers [3] from relevant registers (upon request)
  • to exclude insurance companies [1] from the State Register of Financial Institutions (enforced)
  • to deny registration in the State Register of Financial Institutions [2]
  • to appoint authorized persons at nonbank financial institutions [11]
  • to register updated and/or new rules for voluntary insurance [1]
  • to issue a certificate for provisional administration of a nonbank financial institution [10].
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