Document from CIS Legislation database © 2003-2019 SojuzPravoInform LLC

LAW OF UKRAINE

of December 7, 2000 No. 2121-III

About banks and banking activity

(The last edition from 05-07-2018)

Section I. General provisions

Chapter 1. General provisions

Article 1. Subject and purpose of the Law

This Law determines banking structure, the economic, organizational and legal basis of creation, activities, reorganization and liquidation of banks.

The purpose of this Law is legal support of stable development and activities of banks in Ukraine and creation of proper competitive environment in the financial market, ensuring protection of legitimate interests of investors and clients of banks, creating favorable conditions for development of economy of Ukraine and support of domestic producer.

Article 2. Determination of terms

In this Law terms are used in the following value:

determination of the term "underwriting" is excluded according to the Law of Ukraine of 04.07.2012 No. 5042-VI

the associated person - the husband or the wife, direct relatives of this person (the father, mother, children, brothers and sisters, the grandfather, the woman, grandsons), direct relatives of the husband or the wife of this person, the husband or the wife of the direct relative;

the affiliate of bank - any legal entity in whom the bank has essential participation or which has essential participation in bank;

bank - the legal entity who based on the banking license has exclusive right to provide banking services, data on which are entered in the State register of banks;

bank cover - bank, other credit institution - the nonresident who has no permanent location and does not conduct activities for the place of the registration and/or is not subject to the corresponding supervision in the state (in the territory) in the place of the arrangement

bank with the foreign capital - bank in which the capital share belonging at least to one foreign investor constitutes at least 10 percent;

banking group - group of legal entities:

which have the general controller, consisting of parent bank, its one or several Ukrainian and/or foreign subsidiary and/or associated companies which are financial institutions or for which provision of financial services is the prevailing type of activity, or

consisting of parent bank which is controller, its one or several Ukrainian and/or foreign subsidiary and/or associated companies which are financial institutions or for which provision of financial services is the prevailing type of activity, or

which have the general controller, consisting of two or more Ukrainian financial institutions and/or the companies for which provision of financial services is the prevailing type of activity, their Ukrainian and/or foreign subsidiary and/or associated companies which are financial institutions or for which provision of financial services is the prevailing type of activity in which banking activity is prevailing, or

consisting of non-bank financial institution or the company for which provision of financial services is the prevailing type of activity, is controller, its one or several Ukrainian and/or foreign subsidiary and/or associated companies which are financial institutions or for which provision of financial services is preferential type of activity in which banking activity is prevailing.

The bank holding company and the company on provision of support services which has the general controller with members of banking group is part of this banking group.

The company is considered such for which provision of financial services is the prevailing type of activity if the share of the income from realization of financial services in results of the previous accounting year constitutes 50 and more percent of total amount of net income (revenue) from sales of products (goods, works, services).

The prevailing activities in group are bank if cumulative arithmetic-mean value of assets of banks (bank) - members (participant) of banking group for the last four reporting quarters makes 50 and more percent of the cumulative extent of arithmetic-mean values of assets of all financial institutions relating to this group for the specified period. Calculation of the prevailing activities of banking group is perfromed annually as of January 1.

After the group was determined bank based on the prevailing activities and the share of total assets of banks (bank) in the cumulative size of assets of the organizations relating to this group decreased and constitutes from 40 to 50 percent, the group continues to be considered bank within three years from the moment of such reduction;

banking activity - attraction in deposits of money of physical persons and legal entities and placement of the specified means on its own behalf, on own conditions and on own risk, opening and maintaining bank accounts of physical persons and legal entities;

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