President of Ukraine Volodymyr Zelensky signed the law on amending some legislative acts of Ukraine on improving the organization of corporate governance in banks (No. 1587-IX), which the Verkhovna Rada adopted on June 30.
According to the presidential press service on Monday, this document will help improve the quality of banks in Ukraine, will contribute to the stability of the banking sector, and strengthen the protection of the rights of depositors and other creditors.
In addition, the law is aimed at adapting the banking legislation of Ukraine to the legal norms of the European Union.
“In particular, he strengthens corporate governance in banks by increasing the responsibility of the board and the board of a financial institution for decisions. The list of issues related to the exclusive competence of the bank’s board is also expanding. At the same time, requirements are established for members of the bank’s board and council for their collective suitability,” the office said.
It is noted the document also introduces a three-tier system of internal control of the bank, which should be integrated into the corporate governance system.
“This will help improve the quality of bank management, including risk management,” the President’s Office said.
The law also prescribes a new structure of the bank’s capital, including the requirements for the formation of capital buffers. Requirements are established for the adequacy of the internal capital and liquidity of the bank, taking into account possible risks. The powers of the National Bank in the field of supervision are expanding.
“In addition, the provisions for the implementation of consolidated supervision of banking groups, approval of the acquisition or increase of significant participation in banks are being improved, the requirements for licensing of banks and shareholders are being tightened,” the office said.
