NBU to update regulations on activities of nonbank financial institutions

"The National Bank has chosen licensing, supervision, inspections, risk assessment, enforcement measures, reporting and auditing as priority areas to update in the regulatory framework. These amendments will standardize and bring approaches, regulatory and control procedures in line with international standards,” reads the report.

In 2020, the National Bank plans to adopt at least 11 new normative acts to regulate activities on the nonbank financial services market.

It is noted that the central bank follows the principles of transparency and partnership and involves business representatives and experts in the work on joint development of regulatory acts. These changes are hoped to create effective and modern regulation that could meet the needs of both market participants and financial services consumers.

As reported by Ukrinform, on September 12, 2019, the Verkhovna Rada adopted amendments to certain legislative acts on "improving functions of the state regulation of financial services markets" (No.1069-2), which aim to reduce the number of state regulatory and controlling agencies on the nonbank financial services market through the split of functions of the Financial Services Commission among other state regulatory bodies on the financial services market.

On July 1, 2020, the National Bank became the regulator of insurance, leasing, financial companies, credit unions, pawnshops and credit bureaus.

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