Rada passes bill on independent supervisory boards in state banks

The Verkhovna Rada, Ukraine's parliament, has passed as a basis and as a whole the draft law providing for the improvement of corporate governance in state banks.

According to an UNIAN correspondent, 263 MPs with a required minimum of 226 votes backed the relevant decision on the bill on amending certain legislative acts of Ukraine regarding the improvement of the functioning of the financial sector in Ukraine (No. 8331).

Reporting on the bill, First Deputy Chairman of the Committee for Financial Policy and Banking Mykhailo Dovbenko said the document had been seriously amended by the relevant committee and therefore urged lawmakers to pass it as a basis and as a whole.

He said the law would help improve the financial sector in Ukraine.

Read alsoUkraine invests almost $16 bln in state-owned banks for 10 years – EBRD

Dovbenko also said the law would enhance corporate governance of state-owned banks and create independent supervisory boards.

According to the text of the bill, it is proposed to form the supervisory board consisting of nine members, of whom six should be independent, and three shall be state representatives from the president, Cabinet of Ministers, and Verkhovna Rada.

To determine applicants for the positions of independent members of supervisory boards in state banks, the Cabinet of Ministers establishes a competitive commission, which includes one representative from the president, three representatives from the government and one representative from the profile committee of the Verkhovna Rada.