Further Improving the Comprehensive Program of Financial Market Development in Ukraine

During the Chamber’s Round table devoted to the Program of Financial Market Development in Ukraine for 2015-2020, Vladyslav Rashkovan, Member of the NBU Council, Deputy Governor of the National Bank of Ukraine, discussed with business representatives their specific suggestions on strategic documents, published by the National Council of Reforms.

Vladyslav Rashkovan explained, that the Comprehensive Program will define the direction of further development of the financial market until 2020. According to Mr. Rashkovan, the Program will allow better structuring of the market. Each section of the reform will be accompanied with a specific action plan and assigned with a project team to fulfill the plan.

Moreover, Vladyslav Rashkovan pointed out, that in order to strengthen interagency cooperation and to implement comprehensive solutions, the NBU remains closely in touch with all the governmental institutions represented by the National Council of Reforms.

Taras Kyrychenko, Co-chair of the Chamber’s Banking & Financial Services Committee, Chairman of the Board of Pravex Bank, drew attention to the goals of the Comprehensive Program that regard the financial services market liberalization: “Liberalization should foresee the creation of preconditions for decreasing corruption, as well as the interaction of public and private sectors, if it does not involve the risks for the state and its citizens. From my point of view, we are regulated to the extent when doing business in the country is very tough. It is not about exchange rate, as we do realize that the measure is dictated by military operation. It is about restrictions hampering the development of separate business branches. The more notable liberalization is the more attractive our country is for investors. In financial sphere, especially in banking sector, liberalization is far more complex task, yet however attractiveness of investment climate should be guaranteed. In Ukraine, for example, the insurance market has colossal potential, that could provide significant income for the country.  New decisions of the government should be converted into the investors’ desire to enter Ukrainian market”.

Generally representatives of business community welcome the intentions and achievements of the NBU and other members of the working group of the National Council of Reforms concerned with the development of the Comprehensive Program of Financial Market Development. Chamber member companies lay big hopes on implementation of the provision that will be introduced by the Program.

At the same time, market participants emphasized the necessity of further development of the Program in the following aspects: bringing the clarity as regards to measures for protecting creditors/investors rights; creating the single mechanism for grouping and removing problem loans from banks' balance sheets; creating the pool for financial savings’ guarantees covering all contributing financial institutions; creating the possibility of purchasing separate licenses for banks with diverse structure of assets and operations; clarifying the issues of demonopolization of the financial service, in particular transferring the function of social insurance to the market; introducing to the Comprehensive Program such areas of development, as bills, promissory notes, factoring, leasing etc. 

Finally, the participants of the meeting agreed on the necessity of regular measuring the trust of physical persons towards the financial institutions operating in Ukraine.

It was agreed that all proposals from the market participants will be submitted to the NBU and Chamber experts will be involved into the Comprehensive Program sectors development working groups.