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Plans of the National Bank: what the NBU plans to do before 2020

25.04.2018

In mid-March, Parliament finally dismissed the Head of the NBU Valery Gontarev and appointed Yakov Smolia in her place. The new head of the financial controller outlined six priority areas, which he plans to deal with until 2020.

Prior to his appointment, Yakov Smoliy, more than six months as acting head of the National Bank of Ukraine, presented the action plan of the financial controller until 2020. The head of the National Bank of Ukraine presented six priority directions, which the National Bank will deal with in the next 2-3 years.

In the NBU intend to reduce inflation to 5% per annum until 2020. Control of inflationary processes NBU began in 2016, but so far has not achieved much success. Instead of the expected inflation of 8% in 2017, the annual indicator reached 13.7%. The purpose of the NBU for the next three years is to achieve low and stable inflation with the help of a more stringent monetary policy.

According to the NBU, in 2017 the number of unprofitable banks decreased from 33 to 18, while operating income grew by 10%. Also, citizens' confidence in the banking system is gradually growing. According to the National Bank, the volume of deposits last year increased by 13%. The regulator's management intends to improve the effectiveness of supervision over banks, optimize their reporting by going to the single digital reporting standard. Also in plans is to reduce the number of state-owned banks.

The NBU wants to resume lending, reducing the share of so-called problem loans. In the plans until 2020 to create an infrastructure for selling problem loans to special companies, to establish an institute of financial ombudsman, which would deal with disputes between the client and the financial institution, and also improve the work of the credit registry.

The new management of the National Bank plans to simplify the access of investors to the Ukrainian market. Also, the plans to regulate the development of the non-bank financial services market, making it transparent, and take care of the protection of consumers of these services. We are talking about various credit unions and pawnshops.

The main financial controller of Ukraine will continue the policy of liberalization of currency regulation. In the National Bank have developed a law on currency, which is already registered in the Verkhovna Rada. The bill should simplify life for both Ukrainians who deal with currency, and for foreign investors. It is also proposed to abolish the pressure on banks and their customers, to abolish control over small currency transactions, to relax sanctions for violations of currency regulation.

The Action Plan until 2020 provides for the transition to non-cash types of settlement. There is work on creating electronic channels for making payments using smartphones. The population is educated about the advantages of non-cash settlements. The NBU intends to reduce the level of cash in the economy to 9.5% and increase the share of users of banking services to at least 65%.

 

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