Financial Stability Council

The Financial Stability Council (FSC) was established by a presidential decree in March 2015.

The FSC identifies systemic risk and threats to financial stability and develops recommendations to minimize their impact on the financial system. The FSC is an inter-agency body and a platform for professional discussions on financial stability.

FSC decisions are nonbinding. Although the FSC does not interfere with the activities of its constituent bodies, it collectively develops public policy proposals that pursue financial stability.

The FSC holds financial stability meetings at least once a quarter.

Information, analytical, and logistical support of the FSC’s activities is provided by the NBU.

In order to be effective, the FSC has established several working groups (committees). The groups aim at developing mechanisms for cooperation and coordination of actions to ensure financial stability in Ukraine, and preparing recommendations for mitigating systemic risks to the stability of Ukraine's banking and/or financial system. It is at the committee level that various the regulators coordinate their legislative and regulatory proposals regarding finance.

Identify, analyze, and assess systemic risks and threats to financial stability.
Prepare recommendations to minimize systemic risks.
Coordinate measures to prevent crises and respond quickly to their manifestations.
Coordinate cooperation between government agencies that affect financial stability.

The Council’s key tasks include:

data exchange, identification and monitoring of systemic risks
recommendations on mitigation of systemic risks
coordination of rapid response measures under financial crisis episodes
coordination of internal and external communications under emerging crisis situations in financial sector.

The Council holds meetings at least quarterly and publishes press releases and annual report on its activity.

The Council is made up of representatives from the National Bank of Ukraine, the Ministry of Finance of Ukraine, the National Securities and Stock Market Commission, the National Commission for the State Regulation of Financial Services Markets, and the Deposit Guarantee Fund. The Council’s decisions are non-binding recommendations.

Co-chairs of the Council:

Governor of the National Bank of Ukraine
Minister of Finance of Ukraine

Chair of the Council:

Chair of the National Securities and Stock Market Commission
Managing Director of the Deposit Guarantee Fund
Two Deputies Governor of the National Bank of Ukraine
Deputy Minister of Finance of Ukraine, responsible for European Integration
Deputy Head of the Office of the President of Ukraine

Committee for the Resolution of Nonperforming Loans at State-Owned Banks

The main task is to develop and provide recommendations to the governing bodies of state-owned banks with regard to:

strategies, policies, methods, and procedures for NPL resolution
possible terms of restructuring (sale of rights of claim, out-of-court settlement of creditor’s claims, enforcement, cancellation of part of the debt, conversion of debt into capital, etc.)
application by the bank of measures (methods) to reduce credit risk
application of NPL resolution procedures
application of financial restructuring procedures.

Committee composition: Chairperson, Deputy Chairperson, and members representing the Ministry of Finance of Ukraine, the National Bank of Ukraine, the Deposit Guarantee Fund, the Ministry of Economy of Ukraine, the Office of the President of Ukraine, and law enforcement authorities.

Financial Development Committee

Main tasks:

identifying areas and priorities of implementing the Strategy of Ukrainian Financial Sector Development
facilitating the coordinated implementation of the measures stipulated in the Strategy of Ukrainian Financial Sector Development, and monitoring the effectiveness of their implementation
reviewing proposed action plans for the financial sector’s development.

Committee composition: Chairperson, Deputy Chairperson, Secretary, and members representing the Ministry of Finance of Ukraine, the National Bank of Ukraine, the Deposit Guarantee Fund, the National Securities and Stock Market Commission, and the Ministry of Economy of Ukraine.

Committee for Preparing Proposals to Set the DGF’s Target size and a Deadline for its Achievement

Main tasks: making proposals to the Council regarding the DGF’s target size indicator and the deadline for achieving it.

Committee composition: Chairperson and members who represent the MoF, the NBU, and the DGF.

Committee for Domestic Debt Market Development

Primary tasks: to exchange information and make recommendations on ways of mobilizing domestic debt market resources to finance the state budget deficit.

Committee composition: Co-chairpersons and members who represent the MoF and the NBU.

Committee for Building a Fully Functional System of War Risk Insurance

Main tasks: preparing recommendations and proposals on how to build a fully functional war risk insurance system in Ukraine, and drafting laws and regulations to develop and implement said system.

Committee composition: Chairperson and members that represent the NBU, the MoF, and the Ministry of Economy.

Committee for Assessing the Impact of the Law of Ukraine On Administrative Procedure on the Activities of Financial Service Market Regulators and the Deposit Guarantee Fund

Main tasks: assessment and, based on its results, preparation of recommendations on identifying the impact of the Law of Ukraine No. 2073–IX On Administrative Procedure dated 17 February 2022 on the functioning of the NBU, the NSSMC, and the DGF, including on the procedure for the passage by said authorities of regulations addressing individual cases/entities.

Committee composition: Chairperson and members who represent the NBU, the NSSMC, and the DGF.