The National Bank of Ukraine (NBU) has expanded grounds and rules of taking disciplinary actions on banks aiming at enhancing the protection of interests of depositors and other creditors of banks and in relation with the introduction of additional requirements to operation of banks.

Thus, the updated version of the regulation on taking disciplinary actions by the National Bank, which was approved by the NBU Board resolution dated May 29, 2019 (No. 73) and entered into force on June 1, 2019, provides for measures for non-compliance of banks with the obligatory economic standard – liquidity coverage ratio (LCR), as well as for non-compliance with the requirements regarding the procedure for the formation and storage of reserves to cover foreign exchange derivatives (forward and futures contracts).

A bank, which has limited or suspended the implementation of certain types of operations, now has the right to submit a petition to reduce the volume (list) of the established restrictions to the NBU.

A bank that ceases banking activity may submit a petition for the early cancellation of certain disciplinary actions to the National Bank, namely: to terminate the written agreement and to early cancel the restriction, suspension or termination of operations. The NBU will satisfy such requests if the plan for terminating banking activities is agreed upon without closing the legal entity.

In addition, the regulator may not apply disciplinary actions to a bank that ceases banking activities if its violations are related to the proper implementation of the plan terminated by the National Bank without closing the legal entity.