Photo from UNIAN
Legislation lays out a set of changes aimed at enhancing banking operations, including by strengthening corporate governance and regulating the specifics of litigation on banks' withdrawal from the market.
Ukrainian President Volodymyr Zelensky on Thursday, May 21, signed into law Bill "On Amending Certain Legislative Acts of Ukraine regarding the Improvement of Certain Banking Regulation Mechanisms."
Legislation lays out a set of changes aimed at enhancing banking operations, including by strengthening corporate governance and regulating the specifics of litigation on banks' withdrawal from the market.
Also, the law introduces updated mechanisms for removing banks from the market, aimed at enhancing the liquidation process and meeting the requirements of the largest possible number of creditors of the bank being liquidated, as well as improving mechanisms for possible government participation in removing the bank from the market.
Such a step will contribute to the reliability and stability of the banking system, restoration of confidence in on the part of investors and lenders.
Read alsoGovernment announces timeframe for IMF memo signing
If implemented, provisions of the law will help improve quality and efficiency of the National Bank's performance in the field of banking regulation and supervision, complete the procedures for removing banks from the market or liquidation of banks, on which courts have overturned relevant decisions.
As UNIAN reported earlier, the Verkhovna Rada adopted the bill on banks on May 13.
The law provides for the inevitability of the process of removing banks from the market, since the relevant decision of the National Bank shall not be reversed or suspended by a court ruling.
The document clearly defines the prerequisites and the procedure for the former owners of banks withdrawn from the marker to receive compensation if they prove in court that the NBU decision was unlawful.
Earlier, Ukrainian President Volodymyr Zelensky has announced at a press conference on his first anniversary in office that he will soon sign a memorandum with the International Monetary Fund (IMF) on financial assistance to Ukraine.
"I'm about to enact the banking law – the last step towards signing the memorandum between the state of Ukraine and the International Monetary Fund. We will sign this memorandum – I am sure that we will sign it in May. It cannot be delayed," he said in Kyiv on May 20.