The Rada adopted changes for banks and depositors: what is provided for by draft law No. 13007-d

The Verkhovna Rada adopted in the second reading draft law No. 13007-d, which provides for changes in the work of the Deposit Guarantee Fund for Individuals, the National Bank of Ukraine, and in the field of joint investment. 271 people’s deputies voted for the document.

The draft law is aimed, in particular, at strengthening the protection of bank depositors and creditors and improving the mechanisms for withdrawing insolvent banks from the market.

What will change for depositors

The document provides for improving the mechanisms for returning funds to depositors and creditors in the event of a bank bankruptcy.

The procedures for withdrawing troubled banks from the market are also to change. It is expected that this process will become more transparent and less costly.

The NBU will receive more powers

Some provisions of the draft law concern the National Bank of Ukraine. Its powers as a secured creditor are being expanded, which should allow for more efficient repayment of debt on refinancing loans.

The mechanism for exchanging information between the NBU and the Deposit Guarantee Fund for Individuals is also being improved.

The changes, in particular, concern work with information containing banking secrecy.

Capital requirements will be increased for banks

The draft law provides for increasing capital requirements for banks in accordance with European standards.

In addition, the document strengthens regulation in the field of cyber protection and money circulation.

The changes also concern the activities of collective investment institutions.

Thus, draft law No. 13007-d covers several areas of financial regulation at once – from the protection of depositors and bank bankruptcy procedures to requirements for bank capital, information exchange and cybersecurity.