The National Bank, as part of the implementation of the provisions of the Law of Ukraine “On Financial Services and Financial Companies,” has established prudential requirements for non-banking financial institutions to ensure their solvency and minimize risks in their activities. This was reported by the regulator's press service.
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In particular, the regulation on prudential requirements for financial companies defines:
- requirements regarding the adequacy of equity capital, the minimum amount of which is determined taking into account the types and number of services of the financial company; the leverage ratio, which will allow financial companies to balance the use of their own and borrowed funds and will be calculated as the ratio of the amount of paid authorized capital and reserve capital to the financial company’s liabilities.
These requirements were approved by Resolution of the NBU Board of December 27, 2023 No. 192 and will come into force on January 1, 2024. Financial companies must bring their activities into compliance with these requirements by July 1, 2024.
The regulation on the regulation of the activities of financial companies entitled to carry out activities to provide guarantees determines:
- a prudential requirement for a non-bank guarantor to maintain at least 50 percent of the minimum amount of equity capital in highly liquid assets (cash, government bonds, etc.); prudential standards for capital adequacy (N1), maximum risk per person or group of related persons (N2), liquidity reserve (N3); mechanism for including subordinated debt in regulatory capital for the purposes of meeting N1 and N2 standards.
The requirements for guarantors were approved by Resolution of the NBU Board of December 27, 2023 No. 191 and come into force on January 1, 2024. To meet the standard value of H1, a transition period will be introduced until April 1, 2024. From the same date, a prudential requirement for the maintenance of highly liquid assets will be in effect.
“The regulation on the application by the National Bank of Ukraine of measures of influence for violation by collection companies of the legislation on the protection of the rights of consumers of financial services determines the procedure for the National Bank to make a decision on the application of measures of influence for violation of legislation on the settlement of overdue debts, informing about such a decision and organizing the relevant document flow,” says the NBU notification.
The regulation was approved by NBU Board Resolution No. 193 dated December 27, 2023, which comes into force on 1 January 2024.
With the entry into force of the provision on the application by the National Bank of Ukraine of measures of influence for violation by collection companies of the legislation on the protection of the rights of consumers of financial services (with amendments).
