Independent members should form majority in state banks' supervisory boards – Poroshenko

Ukrainian President Petro Poroshenko says independent members should form a majority in the supervisory boards of state-owned banks in Ukraine.

"The majority in these boards should be independent members – independent directors. Western transparent and effective practice. No one will ever be able to put pressure on the bank in order to get a politically or corruptly motivated loan," he said a meeting with representatives of domestic and foreign businesses on October 31.

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As UNIAN reported earlier, in early July, the Verkhovna Rada, Ukraine's parliament, passed a draft law providing for the improvement of corporate governance in state banks. 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.

The state represented by the Finance Ministry owns four major financial institutions in Ukraine in terms of assets, namely PrivatBank, Ukreximbank, Oschadbank, and Ukrgasbank.

Independent supervisory boards were formed in the nationalized Ukrgasbank and PrivatBank, while the formation of such boards in Oschadbank and Ukreximbank required changes to the legislation.