The first meeting of Securities Commission, National Bank of Ukraine, Financial Services Commission and TAT Consultant of Strengthening the Regulation and Supervision of the Non-bank Financial Market in Ukraine was held in Ukraine on December 13. It marked the beginning of our Project, which deals with the Non-Bank Financial Sector in Ukraine. Present were Human Dynamics Project Director Ivelina Dilovska, Junior Project Manager Martin Zlatev, members of our consortium, the TAT and the EU Directorate.
The Opening event consisted of opening remarks by the head of International Cooperation, a presentation by the Human Dynamics Project Director, the Team Leader, and representatives of the Beneficiaries.
Ukraine’s financial sector remains bank-centred, highly fragmented, vulnerable and largely non-transparent. Approximately eighty percent of financial assets are controlled by banks where more recent reforms exposed systemic weaknesses, institutional insolvencies and practices that are riddled with abuse. The result has eroded public confidence in banks and in the regulator’s prudential supervision and left a banking sector where more than 52% of the system’s assets are state-owned/controlled. Financial, regulatory and legal reforms for the non-bank sector are still lagging. The result is an excessive number of small, inefficient, often captive and non-transparent financial intermediaries that hamper competition and market development and impede investment flows (domestic and foreign) into Ukraine’s financial sector.
Our project will assist the Ukrainian authorities in strengthening the regulatory framework and supervision practices for securities and investment business, insurance, pensions, non-bank credit institutions, non-bank payment institutions and other non-bank financial services. This will support Ukraine in building a sound regulatory environment for non-bank financial services, which will ensure fair and efficient markets, protect consumers and promote market development, thereby contributing to sustained economic growth. The project has a budget of EUR 2.8m over 36 months and has 3 Key Experts.