Ukraine's Central Bank Proposes New Banking Rules on ESG, Cybersecurity, and Credit Registry

Regulatory Reforms Under Discussion

According to НБУ: The National Bank of Ukraine (NBU) has held consultations with the National Association of Banks of Ukraine (NABU) regarding upcoming regulatory changes for the banking sector. This dialogue is part of the NBU's ongoing effort to modernize the financial system in a challenging environment. Key discussion points included:

• Establishing new risk management requirements;
• Enhancing information disclosure standards;
• Identifying areas for future collaboration on other critical issues.

The meeting participants included First Deputy Governor of the NBU Serhii Nikolaichuk, Director of the Financial Stability Department Pervin Dadashova, Director of the Banking Regulation Methodology Department Oksana Prysiazhniuk, and representatives of NABU. Dadashova and Prysiazhniuk presented the NBU's draft regulatory plans for the near future, which have been published for parallel review and feedback from banks.

Participants engaged in detailed discussions on several collaborative tracks. These included optimizing banking reporting, implementing a credit registry, developing lending (including mortgages), documentary operations and factoring, and improving the resolution of non-performing loans. The NBU also expressed its readiness to provide clarifications on issues important to the banking community.

Core Focus Areas of the New Regulations

Among the central topics of the meeting were:

• Setting requirements for managing third-party risk;
• Integrating Environmental, Social, and Governance (ESG) risk management;
• Further implementing Pillar III prudential disclosure requirements.

“We highly value our cooperation with the banking community. The NABU platform allows us to receive prompt feedback and incorporate it as much as possible, so that through joint efforts we can make our banking sector stronger, more resilient, and capable of making a powerful contribution to the country's development.”

Serhii Nikolaichuk

This discussion between the NBU and the National Association of Banks of Ukraine represents a significant step toward regulatory reforms aimed at fostering the development of Ukraine's banking sector.

The meeting underscores the NBU's commitment to ensuring financial sector stability and adapting to contemporary challenges. Such collaboration between the regulator and banks is expected to improve risk management and increase transparency within the banking system, which is crucial for maintaining public and investor confidence.

In addition to the proposed banking regulations, the NBU recently convened with key financial firms to discuss broader industry challenges and collaborative solutions. This inaugural meeting aimed to foster a deeper understanding of the financial landscape and set the stage for future reforms. For more insights on the discussions held during this significant gathering, refer to our detailed coverage of the NBU's meeting with major financial firms.