As part of the Action Plan implementing its Association Agreement with the EU, signed in September 2017, Ukraine has undertaken to adopt essential cornerstones of the EU legislative framework by year-end 2019.
... Exibir mais + In the area of financial services, a joint working group of the National Bank of Ukraine (NBU), the Ukrainian Deposit Insurance Fund (DGF), and the World Bank Financial Sector Advisory Center (FinSAC) was established to develop an enhanced bank resolution framework aligned with the European Bank Recovery and Resolution Directive (BRRD). Against the overall objective of international standards – ensuring effective bank resolution while safeguarding overall financial stability and reducing the likelihood of public support – the group identified current differences and proposes key measures and legal amendments required to align the Ukrainian bankresolution framework with the BRRD. It also references reforms warranted in related areas as well as conditions for operationalization (listed below) that should be addressed in order to ensure the efficient operationalization of a BRRD aligned framework. This does not imply a recommendation to pursue immediate and full compliance. The gradual phasing-in or postponement of certain elements,such as creation of a resolution fund or the introduction of minimum requirement of eligible liabilities (MREL), as well as divergences in light of particularities due to European integration processes (like state aid driven requirements) and adaptations to local financial market conditionswill be warranted.Significant legislative progress has been made in Ukraine since the financial crisis of 2008. One of the most important financial sector reforms was the transformation of the DGF from a pure deposit insurance and payout entity (paybox) to a bank resolution authority. Further reforms were initiated and supported by the World Bank Financial Sector Development Policy Loan series in 2014 and 2015,with FinSAC support, aimed at strengthening the operational, financial, and regulatory capacity ofthe DGF to cope with massive bank failures. New resolution tools were introduced and a mechanismfor state participation in the resolution of systemically important banks was defined. Despite more than 90 bank failures since the beginning of 2014 authorities have managed to restore public confidence, giving an important stabilization signal to the market. However, the framework in practice relies almost exclusively on public funding and is confronted with a variety of complex implementation problems. Successful recoveries are rare due, in particular, to the substantial erosion of banks’ asset base before insolvency (fraudulent payments and asset transfers preinsolvency)and related party lending. As a result, the DGF has been burdened by high compensation payments which are borne, ultimately, by the government and taxpayers.
Exibir menos -
The 2007 financial crisis has exposed major weaknesses in global financial systems, including the threat to financial stability posed by banks that were too big, interconnected and complex to be closed or go bankrupt.
... Exibir mais + As a result, many banks have been rescued using public support, allowing for an uninterrupted provision of their services, but effectively shifting (most) of their losses to taxpayers instead of banks’ owners or investors. The political realities following the bail-out of banks called for game-changing regulation to reduce both the likelihood and the impact of failure.The Banking Recovery and Resolution Directive (BRRD) became one of the most important building blocks of the Banking Union. The BRRD is the outcome of a long negotiation process. The new bank recovery and resolution framework has wide reaching implications, both within the EU but also for countries with banking relationships with the EU. This Guidebook aims to explain the scope, the principles, and the rationale of the BRRD and related secondary legislation and guidance. Expert contributors, including lawyers and academics, share in this Guidebook their experience of and insights to the BRRD negotiation process, recovery and resolution planning, adoption of resolution decisions and the negotiation of bail-in. The Guidebook also raises awareness of discretionary or non-regulated areas and provides some initial thoughts for further development and possible implementation challenges. These challenges include but are not limited to the management of potential conflict of interests, the application of the public interest test, the choice of resolution tools, and the interaction between cross-border regulations. The Guidebook, together with the accompanying case studies, should help FinSAC client countries understand the resolution process and identify the impact that the BRRD will have on their own financial systems.
Exibir menos -
112266 DEC 12, 2016
Lintner,Pamela; Lincoln Nagy,Marie Anne Johanna; Pyziak,Piotr; Godwin,Andrew John; Schroeder,Susan Caroline; Irsalieva,NurgulDisclosed
Reflecting the fact that prospects for the Western Balkans and more generally smaller countries around the world are significantly dependent on external developments, the Financial Sector Outlook: Financial Systems in the Western Balkans – Present and Future sets out to address the question ‘What could the world around the financial systems of the Western Balkans look like in 2025?’.
... Exibir mais + It does so not by proposing a single forecast, or view of the future, but by exploring key uncertainties and applying the tool of scenario thinking to create three different visions for the world around the Western Balkans financial systems in 2025 aimed at informing the development of financial sector strategies that contribute to the country`s overall success in sustainable and inclusive growth.
Exibir menos -
