Ukrainian bank associations join hands in struggle against ousting small banks from market

Kyiv, December 22 (Interfax-Ukraine) – The Association of Ukrainian Banks (AUB) and the Ukrainian Credit and Banking Union (UCBU) have joined hands in struggle against the authorities' attempt to artificially oust small banks from the market.

"By joining hands to prop up the Ukrainian bank system, AUB and UCBU call on the Ukrainian president, the parliament speaker and the National Bank of Ukraine management… to stop the policy of discriminating small- and medium-sized banks," reads an AUB-UCBU joint statement.

According to AUB and UCBU, a bill on the regulations of banking activity (No. 0884) poses a risk to small-sized banks. The association and the union call on the authorities to give up the significant strengthening of bank capital requirements.

"Of paramount concern is the fact that the bill poses a real threat to the existence of two-thirds of banks in Ukraine," reads the statement.

As was reported, the No. 0884 bill prepared for second reading foresees, among other things, tougher requirements for charter capital of new banks and raises the minimum capital level to UAH 500 million from UAH 75 million. Simultaneously, the central bank is to be authorized to decide on the minimum size of regulatory capital for operating banks, which is presently done by the parliament.