15:42 23.02.2017

Rada passes draft bill on simplified bank reorganization and capitalization

Rada passes draft bill on simplified bank reorganization and capitalization

The Verkhovna Rada on February 23 took as a basis draft law No. 6010 on simplification of capitalization and reorganization of banks.

Some 235 deputies voted for the adoption of the draft law.

According to the National Bank of Ukraine (NBU), the document opens up to all banks, including those not in need of capitalization, the opportunity of reorganization under a simplified procedure, the duration of which will be reduced to three or four months from half a year.

All the banks will also have access to a simplified procedure of capitalization due to contributions of shareholders under the condition that previously the source of origin of the funds contributed is confirmed.

"The reduction of terms of capitalization and reorganization will be possible due to acceleration of regulatory and corporate approvals, as well as reducing the number of coordination documents from the NBU, the Antimonopoly Committee of Ukraine (AMC), the State Fiscal Service and the National Commission on Securities and the Stock Market," the NBU wrote on its Facebook page.

In addition, the bill regulations allow the central bank to make decision on revoking the banking license without liquidating the legal entity.

"This will allow the banks, at their request, to leave the banking market and continue the activities of legal entity, including those in the financial (non-banking) sector," the central bank said.

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