The National Bank of Ukraine (NBU) considers it inexpedient to introduce an additional position of the Deputy Governor of the NBU for the nonbank financial sector, the creation of which was approved during the discussion of bill No. 4367 with amendments to some legislative acts of Ukraine regarding the improvement of corporate governance issues in banks and other issues of the functioning of the banking system by the Verkhovna Rada Committee.
“The introduction of the additional position was very widely discussed at the stage of the adoption of the “split” law and it was then that we substantiated the position of the National Bank that there is no need for this today, since the structure of the NBU is built on a functional principle and a lot of functions that were transferred to the NBU as a result of the “split” were distributed among the existing functional divisions,” First Deputy Governor of the NBU Kateryna Rozhkova said at a press conference on June 22.
She said that, in particular, the financial department is engaged in the financial stability of nonbank institutions, statistics are collected by the statistics department. To solve new functions for the NBU a department of methodology of the nonbank financial sector was created, and a department for supervision of nonbank financial institutions was created in the prudential supervision unit.
“Therefore, the arguments sounded at [a meeting of] the [parliamentary] committee about the need to introduce an additional position of deputy who will deal specifically with the nonbank financial market are unconvincing today. Moreover, all the processes in the NBU are already set up very well,” Rozhkova said.
According to Deputy Governor of the NBU Dmytro Sologub, the NBU has already been regulating the nonbank financial market for almost 12 months and everything is working very well.
“Yes, indeed, we have distributed these functions among the existing and new departments. We see that the departments coordinate their work very well and they clearly do not need an additional deputy,” he said.
According to Sologub, the law on the National Bank adopted six years ago under the program with the International Monetary Fund (IMF) laid the foundations for strong governors that make decisions on major issues.
“Therefore, such rather drastic decisions on the structure of the board, in my opinion, should be coordinated with the IMF,” he said.
