Thus, the National Bank seeks to minimize the effects of quarantine for the financial sector
The National Bank initiates a series of concessions for Ukrainian banks. According to the regulator’s press service, the new anti-crisis measures are intended to support the sector “under current economic conditions”.
From June 6 to 2021, fines and other measures of influence will not be imposed on banks and banking groups:
- Violation of established requirements for capital adequacy, liquidity and credit risk
- Violation of restrictions on transactions between persons belonging to a bank and an investor in a subordinated debt.
It is specified that the exemption only applies to violations that have occurred Due to the negative impact of quarantine and restrictive measures On the activities of a bank or banking group which did not violate the standards of capital adequacy and liquidity provided in Articles 75 and 76 of the Law on Banks and Banking Activities at the same time. The decision also does not apply to banks that, despite the recommendations of the NBU, distributed dividends for 2019 by paying dividends.
First Deputy Chief of NBU
It has been reported that the regulator will continuously monitor the elimination of violations by banks and banking groups. To this end, the responsible persons of banks and banking groups, within 30 calendar days from the date of the breach, submit to them or the “acceptable plan” of the NBU to eliminate a capitalization program and submit a monthly report on its implementation. needed.
At the same time, in the process of terminating the breach, the bank is obliged to comply with the established restrictions on activities, particularly in transactions with related parties, allocation of capital, payment of additional remuneration to top management and so on.
These anti-crisis measures were approved by NBU Decree No. 73, which will come into force on 6 June 2020.
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We previously wrote that in May the National Bank fined two banks and a non-banking financial company for violating the law in the area of financial surveillance. The fine was obtained by Taskcombank, Polycombank and Weforpay payment service, NBU Press Service reports.
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