NBU relaxes reorganization of banks via merger

The National Bank of Ukraine (NBU) has optimized the procedure for reorganizing banks via merger to meet the requirements of the law on relaxing reorganization and capitalization of banks, the central banks has reported on its website.

The amendments are outlined in NBU board resolution on amendments to resolution No. 48 dated June 8, 2017 on the specifics of reorganization of banks under a decision of their owners.

The NBU said that the amendments would allow considerably cutting the terms of reorganization.

The procedure would be the following:

- banks participating in reorganization submit a package of documents to receive the preliminary conclusion from the NBU and approval of the draft reorganization plan;

- then supervisory boards convene the general meeting of banks participating in reorganization to make a decision to merge, approve the reorganization plan and the merger agreement;

- after receiving the application from banks participating in reorganization the NBU permits reorganization within three working days and places the information on reorganization of the banks on NBU's official portal;

- after receiving the permit from the NBU the banks are reorganized in line with the relaxed procedure.