Some 22 banks work to reduce operations with affiliated entities

The National Bank of Ukraine (NBU) has reported that as of January 1, 2018, there had been 22 banks that continued working under individual plans to bring the size of credit risks on operations with affiliated entities in line with the regulator's requirements.

This is stipulated on the NBU's website.

The NBU reminded that as of the beginning of last year, the number of the banks with revealed violations of requirements for operations with affiliated entities had been 44 out of 99 examined banking establishments. In 2017, the NBU completed the review of programs prepared by the banks to reduce the above-limit amounts of affiliated entities' debts.

At the same time, considering fulfillment by the banks of individual schedules in practice and their feedback, the regulator in 2017 allowed banking institutions to apply for an extension of the validity of action plans for up to two years.

"A bank can only get such a right if all of the activities specified in the individual plan are performed in good faith, in particular, if the amount of overdue debt of related persons is reduced by 20% during the first year of the implementation of the plan. This was already used by one bank that extended the general term of the program from three to five years," the NBU said.

In general, the National Bank in 2017 completed the first stage of the development of a comprehensive system for identification and monitoring of transactions of entities affiliated with banks.