"President of Ukraine Volodymyr Zelenskyi has signed Law No. 590-IX 'On the Introduction of Amendments to Some Certain Legislative Acts of Ukraine to Improve Some Mechanisms for Banking Regulation,' which the Verkhovna Rada adopted on May 13, 2020," the report reads.
It notes that the law provides for a set of changes aimed at improving the activities of banks, in particular by strengthening corporate governance and regulating the peculiarities of litigation in cases to withdraw banks from the market.
In addition, the law introduces updated mechanisms for withdrawing banks from the market, which are aimed at improving the liquidation procedure and meeting the requirements of as many creditors of the liquidated bank as possible, as well as improving mechanisms for possible state participation in withdrawing the bank from the market.
"Such a step will contribute to the reliability and stability of the banking system and the restoration of confidence in it from depositors and creditors," the President's Office said.
The implementation of the law is expected to help improve the quality and efficiency of the NBU performing its functions in the field of banking regulation and supervision, complete procedures for the withdrawal of banks from the market and the liquidation of banks the decisions on which have been overturned by courts.
The Verkhovna Rada at an extraordinary meeting on May 13 passed a law introducing amendments to some legislative acts of Ukraine to improve some mechanisms for banking regulation.
In particular, it will make it impossible to repeal the NBU's decision to nationalize or liquidate banks and return unfair compensation from the state budget to their previous owners.
The adoption of the banking law is one of the IMF's two main requirements for providing financial assistance to Ukraine (the second condition was the adoption of a law on the land market, which the parliament passed on March 31).
Upon the adoption of the law on banks, MPs Anton Poliakov and Oleksandr Dubinsky registered in parliament draft resolutions proposing to repeal the law.
The Verkhovna Rada rejected the draft resolutions at a meeting on May 19.