The National Bank of Ukraine continues the reform of the financial sector in accordance with the standards of the European Union, consistently fulfilling the requirements of the Association Agreement of Ukraine with the EU (hereinafter – the Agreement).
According to the government’s monitoring system “Pulse of the Agreement”, the overall rate of implementation of the Agreement in the field of financial services increased by 5% during 2022 and currently stands at 67%. The level of completion of tasks for which the National Bank is the main responsible body is 92%.
In 2022, the National Bank moved along the following key directions on the European integration path.
Implementation of EU legal acts
The National Bank is consistently bringing the regulation of the financial sector of Ukraine closer to EU standards and regulations, implementing EU legal acts into Ukrainian legislation.
In particular, on the initiative of the National Bank, a draft of the new edition of the Law of Ukraine “On Mandatory Civil Liability Insurance of Land Vehicle Owners” was prepared. The project proposes to introduce a new model of regulation of the market of compulsory civil liability insurance of vehicle owners, taking into account Directive 2009/103/EU1 and significantly increase the level of protection of the rights of road accident victims. Now the draft law has been adopted in the first reading.
At the same time, in 2022, the National Bank developed regulations aimed at implementing already adopted European integration laws in the areas of banking regulation and supervision, payment services, insurance, and consumer protection. The legal acts of the National Bank provide for the implementation of the following EU acts: Directive 2013/36/EU2Regulation (EU) 575/20133Directive (EU) 2015/23664Directive 2009/110/EC5Directive 2009/138/EC6.
Preparation of answers to the EU Questionnaire
In 2022, the National Bank took an active part in the preparation of answers to the EU Questionnaire, on the basis of which a positive conclusion was formed regarding the ability of our state to fulfill its obligations regarding EU membership. This conclusion contributed to granting Ukraine the status of a candidate country for EU membership.
In particular, experts of the National Bank participated in the preparation of answers for 11 sections of two parts of the Questionnaire, including summarizing the answers in sections 4 “Freedom of capital movement” and 9 “Financial services”. The National Bank also processed additional questions of the European Commission regarding sustainable financing.
Expansion of international cooperation
In 2022, the National Bank carried out successful measures to establish cooperation with EU institutions – the European Commission, the European Central Bank, the European Banking Supervision Authority and the European Insurance and Pensions Authority.
The National Bank also elaborated on the conditions for Ukraine’s accession to the Single Euro Payments Area (SEPA).
During the year, the National Bank participated in the work of bilateral association bodies between Ukraine and the EU in order to ensure dialogue with the EU side. Thus, representatives of the National Bank took part in the seventh meeting of the Ukraine-EU Association Committee in the trade composition. The National Bank also participated in the preparation of the eighth meeting of the Ukraine-EU Association Council and the expected results of the 24th Ukraine-EU Summit.
The regulator will continue to carry out a set of necessary measures to ensure that Ukraine fulfills its obligations in the field of European integration.
1Directive of the European Parliament and the Council 2009/103/EC dated September 16, 2009 on civil liability insurance in connection with the use of motor vehicles and ensuring the fulfillment of the obligation to insure such liability.
2Directive of the European Parliament and the Council 2013/36/EU dated June 26, 2013 on access to the activities of credit institutions and prudential supervision of credit institutions.
3Regulation of the European Parliament and the Council (EU) No. 575/2013 dated June 26, 2013 on prudential requirements for credit institutions.
4Directive of the European Parliament and the Council (EU) 2015/2366 of November 25, 2015 on payment services in the domestic market.
5Directive of the European Parliament and the Council 2009/110/EC of September 16, 2009 on the initiation and implementation of activities by electronic money issuing institutions and their prudential supervision.
6Directive of the European Parliament and the Council (EU) 2009/138/EU on starting and conducting activities in the field of insurance and reinsurance (Solvency II).