NBU publishes draft White Paper for regulation of non-bank financial market for public discussion
The National Bank of Ukraine (NBU) has published a draft White Paper "Future in Regulation of the Non-Bank Financial Sector" for public discussion.
"This document outlines the approaches of the National Bank to market segmentation, licensing, prudential supervision, reporting, audits, corporate governance and consumer protection," the NBU said in a report on its website.
The central bank presented its vision of new regulation of the non-bank financial market in this document.
The regulator will be responsible for a significant part of the non-banking financial market if the parliament adopts bill No. 2413a amending some legislative acts of Ukraine concerning the consolidation of the functions of state regulation of financial services markets, which was already supported by the Verkhovna Rada Committee on Financial Policy and Banking and recommended for adoption at second reading.
New regulation is proposed for insurance companies, credit unions, pawnshops, leasing and factoring companies and other financial companies engaged in currency exchange, transfer of funds, lending, provision of guarantees and other financial operations.
"The bill provides for 12 months of the transitional period, during which the current regulation will be carried out and the National Commission for Financial Service Markets Regulation will operate with full powers. At this time we will develop, discuss and improve new standards with market participants and prepare for the transfer of cases. We are ready for dialogue with the market and we are sharing our vision of a regulatory model. This week we will invite key players, associations and experts to the first working meeting on this issue," the press service said, citing NBU First Deputy Governor Kateryna Rozhkova.