NBU determines criteria for classifying financial market participants as critical for economy during martial law

The National Bank of Ukraine (NBU) has determined the criteria for classifying financial market participants as institutions of great importance for the sector of the national economy.

This is enshrined in the Resolution of the NBU Board No. 32 On approval of the regulations on determining by the National Bank of Ukraine legal entities critical for the functioning of the economy and supporting the livelihoods of the population in the special period, dated March 24, 2023, which comes into force on March 29, 2023.

The NBU said on its website, the decision was made in pursuance of the Resolution of the Cabinet of Ministers No. 76 Some issues of implementing the provisions of the Law of Ukraine On mobilization training and mobilization regarding the reservation of persons liable for military service for the period of mobilization and for wartime, dated January 27, 2023, according to which the institution to determine its critical importance must meet at least three of the seven criteria, one of which is the criterion of importance for the sector of the national economy.

According to the criteria established by the NBU, an institution can be identified as important for the financial market, provided that it is:

– a systemically important bank;

– by an insurer classified in the first or second group of public importance, having a valid license to carry out voluntary life insurance or compulsory insurance of civil liability of land vehicle owners;

– an insurer that complies with the standard of solvency and capital adequacy and the standard of riskiness of operations established by the legislation of Ukraine on the regulation of the activities of non-banking financial institutions;

– a single association of insurers providing compulsory insurance of civil liability of land vehicle owners for damage caused to third parties;

– a lessor that is a member of a banking group in which the responsible bank is systemically important, and whose value of new financial leasing agreements concluded during the last reporting year exceeds UAH 1 billion;

– a participant in the payment market and it is classified as systemically important or important payment systems, important participants in payment systems and important technological operators based on the results of 2022;

– a legal entity that has received a license from the NBU to provide banks with services for collection and approval of the National Bank for processing and storing cash, which, on average, collects and transports cash in the amount of more than UAH 5 billion per quarter, including funds from public institutions, and collects at least 1,000 customer outlets and at least 1,000 ATMs and/or self-service software and hardware systems;

– a legal entity providing services to systemically important banks, ancillary to payment services, whose activities are directly related to servicing ATMs, payment terminals, performing interbank payment transactions in volumes of at least 35% of the number of relevant devices or operations of a systemically important bank.

The NBU also said in order to be designated as critical institutions, financial market participants must submit documents to the regulator and provide information confirming their compliance with at least three of the seven criteria, including the industry one.

Based on the results of consideration of the application, the NBU will send its decision to the applicant (within three working days from the date of its adoption).

If the institution is recognized as critical for the financial market, it must provide the National Bank with a list of conscripted workers for their reservation. After consideration and verification of this list, the NBU will submit it for approval to the General Staff of the Armed Forces of Ukraine in accordance with the requirements of Cabinet of Ministers Resolution No. 76.

Source: www.en.interfax.com.ua