The report on the implementation of the Comprehensive Program for the Development of the Financial Sector 2020 has been published

The National Securities and Stock Market Commission, the National Bank of Ukraine, the National Commission for the State Regulation of Financial Services Markets, the Individual Deposit Guarantee Fund and the Ministry of Finance of Ukraine publish a Report on the Implementation of the Comprehensive Financial Sector Development Program until 2020 (hereinafter –  Program).

Given the complexity and complexity of the tasks that have been set before the regulators, the level of the Program’s implementation is acceptable. In general, two thirds of the Program’s activities have been completed in full or by at least one regulator. The remaining tasks will be implemented already within the framework of the Strategy of Financial Sector Development of Ukraine until 2025, which was presented in January this year.

Successful implementation of the most of the tasks provided by the Program contributed to solving of a number of economic problems of Ukraine accumulated in previous years, and returning of macroeconomic stability to the country after the crisis of 2014-2015. Among the key reforms implemented in recent years, we should mention, in particular, the following:

• the institutional capacity of the central bank was strengthened and its internal transformation was carried out;
• inflation targeting and transition to flexible exchange rate formation were introduced;
• large-scale currency liberalization was carried out;
• the banking sector was rehabilitated;
• increased responsibility of owners and management of banks and non-bank financial institutions;
• improved the system of corporate governance in companies;
• banks and non-bank financial institutions transition to international financial reporting standards;
• the legislation in the field of securities issuance and stock market disclosure has been brought in line with European standards;
• the system of state regulation and supervision of non-bank financial institutions has been optimized;
• introduced a transparent mechanism for the sale of assets (property) of insolvent banks, in particular through the electronic trading system Prozoro Sales;
• provided conditions for the introduction of the institution of a nominal holder in order to simplify the procedure of foreign investment in Ukraine;
• a unified approach to licensing in the markets of non-banking financial services has been introduced;
• requirements for disclosure of information and reporting of non-bank financial institutions were strengthened;
• increased liquidity, diversification and return on assets of insurers, requirements for their solvency;
• an automated system of payments to depositors of insolvent banks was introduced, the term of payment of the guaranteed amount of deposit compensation was shortened, the list of depositors covered by DGF guarantees was expanded, in particular, the list included natural persons-entrepreneurs;
• electronic signature was introduced in the banking system, remote identification system BankID NBU;
• the Credit Register was created;
• financial monitoring procedures were strengthened.

Fulfillment of most of the tasks envisaged by the Program has significantly improved the characteristics of the financial sector. Strengthening regulatory requirements to financial institutions and information disclosure, improving the quality of supervision and measures aimed at improving their health and additional capitalization significantly improved transparency and sustainability of the financial sector.

The implemented reforms also contributed to the improvement of macroeconomic indicators of Ukraine. In particular, a stable economic growth rate of 3-4%, a slowdown in inflation to the optimal level for our economy of 5%, a steady increase in international reserves, etc. have been ensured.

The implementation of new initiatives for the development of the financial sector is planned as part of the implementation of the action plan in the Strategy of Financial Sector Development of Ukraine until 2025.