The Ministry of Finance published a report on the status of implementation of the New Framework of Strategic Reform of the State Banking Sector in 2018

3/7/19

The Ministry of Finance published a report on the state of implementation of the New Framework of Strategic Reform of the State Banking Sectoradopted by the Cabinet of Ministerson February 21, 2018.

Within a year, state banks and other participants of the banking sector reform achieved significant results.

- State Savings Bank, PrivatBank and Ukrgasbank are implementing individual development strategies. Ukreximbank, in its turn, will adopt its strategy following the election of an independent supervisory board.

- Amendments to Article 7 "State Banks" of the Law of Ukraine On banks and banking have been introduced. These changes have significantly altered the principles of corporate governance in state-owned banks.

- With a view to resolve the issue of non-performing loans (NPLs), a Special Independent Committee was established under the Financial Stability Board following the Ministry of Finance’s initiative. The share of non-performing loans in the portfolios of state owned banks shrank to 67.9%. Report on the state of affairs with non-performing loans in the state banking sector is available here ( in Ukrainian only).

- Ukrgasbank has fully complied with its obligations stipulated by the memorandum with IFC to support privatization of the bank signed with IFC. Moreover, two months ago, the Ministry of Finance, Ukrgasbank and IFC announced the start of the structuring of the financial instrument for the corporation's entry into the bank's capital.

More information is available in the presentation (in Ukrainian only).

Several days before, the MoF also published the report on NPLs in SOB.

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