: :inin Kyiv (EET)

Verkhovna Rada of Ukraine simplifies banks` recapitalization, restructuring


The Verkhovna Rada of Ukraine March 23 adopted bill No.6010 on simplification of procedures for the banks` capitalization and restructuring, according to an UNIAN correspondent.

Presenting the bill in the Rada, First Deputy Head of the Parliamentary committee on finance and banking policy Mykhailo Dovbenko said that this bill would allow protecting the interests of small and medium-sized banks, simplifying the procedure for their restructuring and recapitalization.

According to him, the law will allow banks to give up their banking license without liquidation of the legal entity, which will ensure that the financial institution is able to continue operations in the non-banking financial sector, after fulfilling obligations to depositors.

Memo. The National Bank in 2016 with its Decree No.58 ordered banks to increase their capital to UAH 200 million by July 11, 2017; to UAH 300 million by July 11, 2018; to UAH 400 million by July 11, 2019; to UAH 450 million by July 11, 2020; and to UAH 500 million to July 11, 2024.

According to the bankers` estimates, the implementation of the NBU requirements can become a daunting task for dozens of smaller financial institutions, and therefore the processes of mergers and liquidations will accelerate in Ukraine`s banking market.

In the course of the banking system purge in 2014-2016 and at the beginning of 2017, the National Bank of Ukraine withdrew from the market some 90 banks. 33 of those banks became insolvent in 2014, another 33 – in 2015, 21 – in 2016, and another three – in 2017.

UaPositon

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