The National Bank of Ukraine (NBU) welcomes Parliament’s adoption of Draft Law No. 7114-д On Amendments to Certain Laws of Ukraine on Establishing and Maintaining of the Credit Register of the National Bank of Ukraine in the second reading and as a whole. A total of 226 MPs voted in favor of this decision.
"The NBU Credit Register is an additional efficient instrument of banking supervision designed to lower credit risk, ensure security of banking transactions, protect interests of bank depositors and other bank creditors, and thus enhance the overall banking system stability and resume lending", stressed NBU Deputy Governor Kateryna Rozhkova.
The daft law adopted in the second reading will have a positive impact on the macrofinancial stability of the country. Hence, setting-up and recordkeeping of the state Credit Register by the central bank fosters effective operating of the information exchange system essential for lending. This system is precisely necessary for effective banking regulation and supervision, as well as for adequate risk assessment by banks in the course of lending and for reducing the share of non-performing loans.
Furthermore, while keeping records of the Credit Register the NBU will monitor credit risk concentrations and consequently improve protection of interests of depositors and other bank creditors.
In the process of compiling and maintaining of the Credit Register the NBU shall:
- use information from the Credit Register for financial stability objectives
- enhance credit risk management by banks
- provide banks with information.
At the same time, banks shall be compelled:
- to provide and regularly update information (this also applies to the Deposit Guarantee Fund)
- to use the information for credit risk assessment
- to notify a customer that his/her information will be recorded in the Credit Register.
Thereupon, each bank borrower shall:
- be granted access to information hereon recorded in the Credit Register
- be entitled to demand amendments to such information, should there be any dispute about the content.