Photo from NBU
The National Bank of Ukraine (NBU) has streamlined the procedure of bank reorganization through mergers in accordance with the law of Ukraine on simplifying capitalization and reorganization procedures for banks, according to the NBU's website.
This move will enable banks to shorten significantly the duration of the reorganization process, including by speeding up the document review process by the regulator, the report said.
Therefore, the NBU will make a final decision on the approval of the reorganization of banks at the planning stage rather than at the implementation stage. This approach will shorten the procedure for reorganization of banks through mergers on the average from one and a half year to three months.
Read alsoNBU makes it easier for businesses to invest abroadAs UNIAN reported earlier, the National Bank in 2016 issued resolution No. 58 to oblige Ukrainian banks to raise capital to UAH 200 million by July 11, 2017; to UAH 300 million by July 11, 2018; to UAH 400 million by July 11, 2019; to UAH 450 million by July 11, 2020, and to UAH 500 million by July 11, 2024.
Compliance with the NBU requirements can become an impossible task for dozens of small financial institutions, and as a result, mergers and closures in the Ukrainian banking market will accelerate, according to bankers' estimates.