Some 22 banks continue work to cut number of deals with affiliated persons - NBU
The National Bank of Ukraine (NBU) has said that as of January 1, 2018, 22 banks continue working under personal plans to bring the size of the credit risk for transactions with affiliated persons in line with the requirements of the regulator.
The NBU recalled that as of early 2017, the number of banks where violation of the requirements to the transactions with affiliated persons was revealed was 44 out of 99 banks that were tested. In 2017, the NBU finished the consideration of the programs to cut above-limit debt of affiliated persons submitted by banks.
At the same time, considering the experience of banks' fulfillment of individual schedules and their wishes, the regulator in 2017 allowed the banking institutions to apply for an extension of the validity of action plans for up to two years.
In general, the report says, in 2017 the National Bank completed the first stage of the development of an integrated system for identification and monitoring of transactions of persons affiliated with banks.
"In 2016-2017, the regulator and banks conducted a large-scale and scrupulous work on identifying and analyzing the transactions of persons affiliated with banks, which was the first stage in the development of a comprehensive program for identifying and monitoring transactions with affiliated parties, the implementation of which will neutralize risks of financing business of banks' owners and other affiliated persons in violation of the NBU regulatory requirements in the future. This in turn will contribute to the stability of the banking system of Ukraine," the NBU said, citing Deputy NBU Governor Kateryna Rozhkova.
