13:55 24.12.2015

Bankers reject NBU's proposal to create independent panel for business reputation

2 min read
Bankers reject NBU's proposal to create independent panel for business reputation

Bankers and representatives of professional associations have decided not to create an independent panel for defining business reputation, the National Bank of Ukraine (NBU) has said on its website.

The position was announced by market players at a meeting with the NBU on business reputation for appointing to posts or agreeing heads of banks held on December 23.

The central bank said that market players explained this by the absence of the required documents due to the restricted access to them, unbiased criteria for decision making and the unwillingness to have own reputation at risk, approving the decisions without access to documents.

"After the discussion with bankers, we've come to the conclusion that the final decision on business reputation should be made by the NBU, as the regulator has access to the results of inspectors' checks and financial monitoring. Any banking association will have a chance of sending an application on recognizing reputation of candidates impeccable, despite some signs. The NBU panel will decide on the basis of the application," First Deputy Governor of the National Bank of Ukraine (NBU) Oleksandr Pysaruk said.

In turn, Head of the Independent Association of Banks of Ukraine (IABU) Roman Shpek said that only the regulator and the Individuals' Deposit Guarantee Fund have data that could be proofs of bankers' involvement in the banks' bankruptcy cases, as this is secrecy in banking.

The NBU said that at present, over 800 persons are deprived of a chance to be heads of banks, and around 620 of them for the period of three years and 180 – for 10 years.

At present, there is no mechanism for defining business reputation of persons despite formal signs, taking into account concrete circumstances and facts.

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