{"id":772772,"date":"2020-04-03T10:47:47","date_gmt":"2020-04-03T07:47:47","guid":{"rendered":""},"modified":"2020-04-03T10:51:48","modified_gmt":"2020-04-03T07:51:48","slug":"verhovna-rada-ukrayiny-shvalyla-zakonoproekt-shhodo-zaborony-povernennya-natsionalizovanyh-bankiv-kolyshnim-vlasnykam-ta-inshyh-pytan-bankivskoyi-diyalnosti","status":"publish","type":"post","link":"https:\/\/new.eba.com.ua\/en\/verhovna-rada-ukrayiny-shvalyla-zakonoproekt-shhodo-zaborony-povernennya-natsionalizovanyh-bankiv-kolyshnim-vlasnykam-ta-inshyh-pytan-bankivskoyi-diyalnosti\/","title":{"rendered":"Verkhovna Rada adopted draft law on prohibition of the return of nationalized banks to their former owners and on other issues of banking activity"},"content":{"rendered":"<p><span data-contrast=\"auto\">On March<\/span><span data-contrast=\"auto\"> 30,<\/span><span data-contrast=\"auto\"> 2020<\/span><span data-contrast=\"auto\">,<\/span><span data-contrast=\"auto\"> the Parliament of Ukraine adopted<\/span><span data-contrast=\"auto\">, at<\/span><span data-contrast=\"auto\"> the first reading the draft <\/span><span data-contrast=\"auto\">l<\/span><span data-contrast=\"auto\">aw<\/span> <span data-contrast=\"auto\">On Improvement of Banking Regulation Mechanisms (<\/span><span data-contrast=\"auto\">the Draft Law).<\/span><span data-contrast=\"auto\"> The Draft Law\u202fintroduces amendments to the regulation of banking activity<\/span><span data-contrast=\"auto\">,<\/span><span data-contrast=\"auto\"> mainly in the field of the withdrawal of banks from the market.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The <\/span><span data-contrast=\"auto\">principal <\/span><span data-contrast=\"auto\">changes introduced by the Draft Law are as follows:\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Decisions of the National Bank of Ukraine <\/span><span data-contrast=\"auto\">(NBU) on<\/span><span data-contrast=\"auto\"> withdrawal of banks from the market are irreversible even if courts find such decisions illegal. Former owners of such banks will not be entitled to get their shares back, only to receive monetary compensation of losses.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:714,&quot;335559739&quot;:160,&quot;335559740&quot;:276,&quot;335559991&quot;:357}\" data-wac-het=\"1\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Monetary compensation of losses <\/span><span data-contrast=\"auto\">will<\/span><span data-contrast=\"auto\"> be awarded by a court and be equal to the fair market value of the shares of the bank at the time when the NBU declared the bank insolvent. Such fair market value will be determined in accordance with the international valuation standards by an international audit firm appointed by the court.<\/span><\/li>\n<li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">The Draft Law introduces the concept of <\/span><i><span data-contrast=\"auto\">professional judgement<\/span><\/i><span data-contrast=\"auto\"> in the decision-making process of the NBU. The NBU will apply its professional judgement (a reasoned opinion) to access the quality of corporate governance of banks, to determine circumstances affecting stability of the bank and in other instances.<\/span><\/li>\n<li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">The NBU will apply new criteria for declaring banks as problematic. The NBU will now have 90 days (instead of 180 days) to remove the bank from the market after declaring it problematic.<\/span><\/li>\n<li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">The Draft Law introduces changes into the liquidation procedure of banks. The Deposit Guarantee Fund will have extended powers to restructure the indebtedness of clients of liquidated banks. Such powers, among others, include the right to change interest rates and security under loans and cancel penalties.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:714,&quot;335559739&quot;:160,&quot;335559740&quot;:276,&quot;335559991&quot;:357}\" data-wac-het=\"1\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">The Government<\/span>\u00a0<span data-contrast=\"auto\">has the <\/span><span data-contrast=\"auto\">right to establish a transition bank in the event of threats to the stability of the banking system. Such a transition bank may receive assets and liabilities of insolvent banks.<\/span><\/p>\n<p><span data-contrast=\"auto\">If the Draft Law is adopted <\/span><span data-contrast=\"auto\">at<\/span><span data-contrast=\"auto\"> the second reading, the law will enter into force after <\/span><span data-contrast=\"auto\">being signed<\/span><span data-contrast=\"auto\">ng by the President and <\/span><span data-contrast=\"auto\">published in the official gazette.<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Authors:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:357,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Oleksandr Kurdydyk<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:357,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Partner, Head of Finance, Projects and Restructuring\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:357,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">DLA Piper<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:357,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><a href=\"mailto:oleksandr.kurdydyk@dlapiper.com\"><span data-contrast=\"auto\">oleksandr.kurdydyk@dlapiper.com<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:357,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Illya Muchnyk<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:357,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Legal Director<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:357,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">DLA Piper<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:357,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><a href=\"mailto:illya.muchyk@dlapiper.com\"><span data-contrast=\"auto\">illya.muchyk<\/span><span data-contrast=\"auto\">@dlapiper.com<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:357,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Oleksandra Poliakova<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:357,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Associate<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:357,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">DLA<\/span> <span data-contrast=\"auto\">Piper<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:357,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><a href=\"mailto:oleksandra.poliakova@dlapiper.com\"><span data-contrast=\"auto\">oleksandra.poliakova<\/span><span data-contrast=\"auto\">@dlapiper.com<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On March 30, 2020, the Parliament of Ukraine adopted, at the first reading the draft law On Improvement of Banking Regulation Mechanisms (the Draft Law). The Draft Law\u202fintroduces amendments to the regulation of banking activity, mainly in the field of the withdrawal of banks from the market.\u00a0\u00a0 The principal changes introduced by the Draft Law [&hellip;]<\/p>\n","protected":false},"author":4489,"featured_media":253641,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[15576,15575],"tags":[],"class_list":["post-772772","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-articles-en","category-news-and-articles-from-companies-en","company-16622"],"_links":{"self":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/772772","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/users\/4489"}],"replies":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/comments?post=772772"}],"version-history":[{"count":0,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/772772\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media\/253641"}],"wp:attachment":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media?parent=772772"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/categories?post=772772"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/tags?post=772772"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}