Banking & Financial Services Committee Meeting
On February 16, the Chamber Banking & Financial Services Committee meeting took place with the agenda focused on the following issues:
1. Non-compliance of international and local methods of formation of banks reserves for active operations: exclusion of loopholes that allow manipulation of the reporting, by Mr. Pavlo Ruzhytskyi, CEO, Factoring Center.
Action: Mr. Ruzhytskui presented proposals in line with Directives 2006/48 and 2006/49 on credit institutions, and with a view of the Law “On Stabilization of the Banking System” and the NBU Regulation #859 softening the requirements until 2019.
All 4 proposals were supported by the Committee as well as agreed to be incorporated into the draft documents prepared by the Chamber and NBU in line with the transfer to International Financial Reporting Standards (IFRS).
Proposals on disclosure and access to statistic data of state authorities should be composed into the Chamber Position Paper, explaining the business community’s vision on the role and activities of the credit bureaus, their functions and role of a single credit register of NBU, which is under development according to the IMF agreements. When prepared, the proposed concept on borrowers information disclosure will we further discussed with IFC.
2. Recognition of Cash and Cash Equivalents at nominal value by the NBU when it comes to banks balance sheet: proposal to increase in deposit guarantee, by Mr. Alex Bart, Founder and Managing Partner, Empire State Capital Partners.
Action: Most of proposals can be implemented before the transfer to IFRS and submitted as amendments to the Draft NBU legislation on IFRS.
All other proposals on foreign currency regulation, proposal and explanation for canceling currency decree of NBU, unlocking the access to the international bonds/stock market should be incorporated into the Chamber Position Paper on FX issues.
3. Draft Law of Ukraine "On Amendments to the Law of Ukraine "On Payment Systems and Money Transfer in Ukraine ", by Mr. Andriy Biryukov, Head of the IT-Alliance.
Action: Considering the importance of the development of electronic payment systems in Ukraine, the Committee Members agreed to support the respective draft legislation after its review and amending (if needed) by the Committee.
4. Draft CMU Resolution "On the Action Plan to Implement the Strategy of Reforming Consumer Protection in Financial Services Markets in 2012-2017", by Mr. Ihor Olekhov, Committee Co-Chair, Partner at Baker & McKenzie.
Action: Amendments to the Draft Resolution will be submitted to the Ministry of Economic Development and Trade.