NBU Governor Gontareva: "In a year, we plan to enter the third stage of reform" / Photo from UNIAN
The governor of the National Bank of Ukraine (NBU) has outlined the main tasks of the 2020 financial sector development program.
The National Bank of Ukraine is about to complete the first stage of the banking sector reform – banking system clean-up – in the framework of 2020 financial sector development program approved by the National Council of Reforms, NBU Governor Valeriya Gontareva said in a statement on the first anniversary of her tenure as Central Bank governor, which is available on the NBU's website.
The NBU says it will start implementing the next stage – the reset of the banking system, during which the regulator will focus on stabilizing and reining in inflation, building up international reserves, further strengthening the banking system and regaining bank depositors' trust.
"In a year, we plan to enter the third stage of reform consisting in sustainable growth and development of the banking system. We also plan to enter the trend of gradual development of capital markets, growth of assets of the entire financial sector, ramping up domestic and foreign investment," the statement reads.
This requires gradual abolishment of administrative restrictions, according to the NBU governor. Therefore, the regulator has agreed with the IMF a schedule and terms for gradual liberalization of the forex and deposit markets.
Gontareva stressed that the NBU was aware of the need for investment resources in Ukraine, the attraction of which requires ensuring economic benefits for the investors, as well as safeguarding their interests and stability.
"Therefore, today's agenda includes the strengthening of the protection of creditors' rights, an improvement in bankruptcy procedures with regard to joint stock companies (including banks and their debtors), further regulation of capitalization procedures and restructuring of banks, and better protection of private depositors," the statement reads.
As UNIAN reported earlier, in May 2015, the National Council of Reforms approved a Comprehensive Program for the Development of Ukraine's Financial Market until 2020, envisaging three stages of reforms.
As part of measures to clean up the banking system, in 2014 and January-June 2015, the NBU declared 51 banks insolvent. Currently, the Individual Deposit Guarantee Fund is withdrawing these banks from the market.