RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of August 28, 2001 No. 368

About approval of the Instruction about procedure for regulation of activities of banks in Ukraine

According to requirements of the Laws of Ukraine "About the National Bank of Ukraine" and "About banks and banking activity" and for the purpose of ensuring stable activities of banks and timely accomplishment of obligations to their investors by them the Board of the National Bank of Ukraine DECIDES:

1. Approve the Instruction about procedure for regulation of activities of banks in Ukraine it (is applied).

2. To general department of banking supervision (P.V.Andrushchenko) and Department of informatization (A. S. Savchenko) till 01.10.2001 to make corresponding changes to program complex of the automated calculation of economic standard rates and to timely bring it to permission of territorial administrations of the National Bank of Ukraine and banks.

3. To banks to accept the finished program complex of the automated calculation of economic standard rates in accomplishment and since 01.11.2001 to carry out its trial operation.

4. Since 01.01.2002 banks perfrom calculation of prudential standard rates according to the Instruction about procedure for regulation of activities of banks in Ukraine approved by this resolution.

5. To general department of banking supervision (P.V.Andrushchenko) and territorial administrations of the National Bank of Ukraine since 01.01.2002 to exercise control of observance of obligatory economic standard rates by banks on new program complex according to the Instruction about procedure for regulation of activities of banks in Ukraine approved by this resolution.

Till 01.01.2002 banks shall observe economic standard rates according to the Instruction about procedure for regulation and the analysis of the activities of commercial banks approved by the resolution of Board of the National Bank of Ukraine of 14.04.98 No. 141 and the corrective action registered in the Ministry of Justice of Ukraine 15.05.98 for No. 323/2763, for violation of which shall be applied according to Chapter 7 of the Regulations on application by the National Bank of Ukraine to banks and other financial credit institutes of corrective actions for violation of the bank law approved by the resolution of Board of the National Bank of Ukraine of 26.05.2000 No. 215 and registered in the Ministry of Justice of Ukraine 03.07.2000 for No. 382/4603 (with changes).

6. Recognize invalid:

Procedure for provision of permission to accounting of the raised funds on the terms of subordinated debt to the capital of bank, the No. 518 approved by the resolution of Board of the National Bank of Ukraine of 25.10.99 and registered in the Ministry of Justice of Ukraine 15.11.99 for No. 786/4079 (with changes);

The instruction about procedure for regulation and the analysis of activities of commercial banks approved by the resolution of Board of the National Bank of Ukraine of 14.04.98 No. 141 and registered in the Ministry of Justice of Ukraine 15.05.98 for No. 323/2763 (with changes).

7. The resolution becomes effective in 10 days after its state registration in the Ministry of Justice of Ukraine, except Item 6, which becomes effective since 01.01.2002.

The instruction about procedure for regulation of activities of banks in Ukraine approved by this resolution becomes effective since 01.01.2002.

8. To general department of banking supervision (P.V.Andrushchenko) to bring this resolution after its state registration to permission of independent structural divisions of the National Bank of Ukraine, territorial administrations of the National Bank of Ukraine, and also banks for management and use in work.

9. To impose control of execution of this resolution on the vice-chairman V. L. Krotyuk, General department of banking supervision (P.V.Andrushchenko), Operation management (V. D. Shchutsky) and chiefs of territorial administrations of the National Bank of Ukraine.

 

Approved by the Resolution of Board of the National Bank of Ukraine of August 28, 2001 No. 368

The instruction about procedure for regulation of activities of banks in Ukraine

Section I. General provisions

This Instruction is entered for the purpose of ensuring stable activities of banks and timely accomplishment of obligations to investors by them, and also prevention of the wrong resource allocation and loss of the capital because of the risks inherent in banking activity.

The instruction is developed according to the commonly accepted principles and standards in the international practice.

According to the Law of Ukraine "About the National Bank of Ukraine" and the Law of Ukraine "About banks and banking activity" the National Bank of Ukraine (further - National Bank) determines procedure of payments of prudential standard rates, being all banks, obligatory for accomplishment:

standard rates of the capital:

minimum size of the regulatory capital (N 1),

sufficiency of the regulatory capital (NRK);

capital adequacy of 1 level (HK1);

sufficiency of fixed capital of 1 level (HOK1);

standard rates of liquidity:

coverage ratio liquidity on all currencies (LCRBB);

coverage ratio liquidity on foreign currencies (LCRIB);

coefficient of net stable financing (NSFR);

standard rates of credit risk:

the maximum extent of credit risk on one partner (N 7),

big credit risks (N 8),

the maximum extent of credit risk on transactions with the faces tied with bank (N 9),

standard rates of investment:

investment into securities separately on each organization (N of 11)-1,

total amount of investment (N 12).

For the purpose of increase in stability of banks in the period of financial and economic instability, creation of capital inventory by them for increase in capability to resist to risks the National Bank establishes requirements for forming of capital buffers by banks, namely: buffers of preservation, counter-cyclical buffer and buffer of systemic risk.

For systemically important banks the National Bank also establishes requirements for forming of the buffer of system importance.

The bank does not include in calculation of prudential standard rates, one of components of which is the regulatory capital or its components, assets or their parts included in deductions from the capital of bank according to Regulations on procedure for determination by banks of Ukraine for the size of the regulatory capital approved by the resolution of Board of the National Bank of Ukraine of December 28, 2023 No. 196 (with changes) (further - No. Provision 196), taking into account requirements of Item 1.6 of Chapter 1 of the Section IV of this Instruction.

The bank when calculating the cumulative size of the assets weighed on degree of credit risk according to Item 1.2 of Chapter 1 of the Section IV of this Instruction does not consider assets which contain in the trade book and are included by bank in calculation of the minimum extent of market risk according to requirements of the Regulations on procedure for determination by banks of Ukraine for the minimum extent of the market risk approved by the resolution of Board of the National Bank of Ukraine of December 30, 2021 No. 162 (with changes) (further - No. Provision 162).

The bank when calculating prudential standard rates uses the credit ratings of debtor/partner/asset on the international scale determined by rating agencies "Standard&poor" s ", " Moody "s Investors Service", "Fitch Ratings" taking into account Item 38 of the Section II of Provisions on determination by banks of Ukraine of the extent of the credit risk on active banking activities approved by the resolution of Board of the National Bank of Ukraine of June 30, 2016 No. 351 (with changes) (further - No. Provision 351).

Action of this Instruction extends to all banks of Ukraine irrespective of patterns of ownership.

To National Bank of unreliable information of rather prudential standard rates banks bear responsibility according to requirements of the current legislation of Ukraine for provision.

The National Bank performs administrative production on provision of the permissions specified in Sections VI, VII of this Instruction (further – Permission), according to the Law of Ukraine "About ministerial procedure" taking into account the features established by the Law of Ukraine "About the National Bank of Ukraine" and the Law of Ukraine "About banks and banking activity".

Administrative production on provision of Permission by National Bank begins according to the statement of bank.

The beginning of administrative production on provision of Permission by National Bank is day of receipt of the statement for provision of Permission (further – the Statement).

The current of term in administrative production begins from the next day after receipt of the Statement by National Bank.

Procedural decisions during administrative production on decision making, determined in this Instruction, prior to consideration of question of the solution of administrative case directly Committee on questions of supervision and regulation of activities of banks, oversight of payment infrastructure (further – Committee on questions of supervision) are accepted by the authorized person of National Bank – the board member of National Bank which performs the common directorship and controls activities of structural division of the National Bank exercising supervision of activities of bank according to distribution of functional obligations between the chairman of National Bank, his first deputy and vice-chairmen of National Bank, or the head of the structural unit of the National Bank exercising supervision of activities of bank.

Procedural decisions later began considerations of question of permission of administrative case directly by Committee on questions of supervision makes Committee on questions of supervision.

The authorized person of National Bank makes the decision on leaving of the Statement without movement if the Application is submitted with violation of the requirements established by the legislation of Ukraine and this Instruction.

The National Bank sends bank the letter on leaving of the Statement without movement behind the authorized signature of National Bank within three working days from the date of receipt of the Statement.

The National Bank in the letter on leaving of the Statement without movement notes the revealed shortcomings with reference to the violated requirements of this Instruction and/or the legislation of Ukraine, method and term of remedial action, and also methods, procedure and term of appeal of the decision on leaving of the Statement without movement.

The authorized person of National Bank has the right to extend the term of elimination of the revealed shortcomings of case of submission of the reasonable corresponding petition by bank.

The National Bank considers the petition submitted bank no later than three working days from the date of its receipt and makes the decision on it.

The National Bank sends bank the letter on refusal in satisfaction of the petition for prolongation of term of elimination of the revealed shortcomings with indication of motives of such refusal behind the authorized signature of National Bank instantly, but no later than the next working day from the date of decision making about refusal in satisfaction of the petition.

The statement is considered the given bank in the day of its initial representation in case of elimination by bank of the revealed shortcomings in time determined by National Bank. The term of consideration of the application is prolonged for the term of leaving of the Statement without movement. The authorized person of National Bank has the right to once extend the term of decision making, determined by this Instruction, no more than for 15 calendar days in case of need of check of reliability provided to documents/information and/or receipts of the additional documents / information necessary for adoption of such decision.

The National Bank notifies bank in the letter behind the authorized signature of National Bank on prolongation of term of decision making with reasons for the made decision at least in three working days prior to completion of deadline for its acceptance determined in Sections VI, VII of this Instruction.

The National Bank has the right during administrative production to report bank in the letter behind the authorized signature of National Bank about need of completion of the provided document package if documents do not conform to requirements of the legislation of Ukraine, and/or about provision of additional documents / information by it, necessary for acceptance of reasoned decision, in the time determined in the letter.

The bank in case of impossibility to submit modifed and/or additional documents / information to the term determined by National Bank has the right to submit the Application for suspension of administrative production for the term which is necessary for submission of such documents / information.

The National Bank in case of non-presentation by bank in certain time of modifed and/or additional documents / information or the Statement for suspension of administrative production makes the decision by result of consideration available for National Bank of documents/information.

The National Bank has the right during administrative production to stop administrative production for check of reliability by the provided bank of documents/information and/or receipt of information from state bodies, foreign state bodies, local government bodies, legal entities and physical persons if lack of such check and/or such documents / information interferes with the objective solution of case.

The National Bank has the right during administrative production to stop administrative production for check of reliability by the provided bank of documents/information and/or receipt of information from state bodies, foreign state bodies, local government bodies, legal entities and physical persons if lack of such check and/or such documents / information interferes with the objective solution of case.

The National Bank notifies bank on suspension of administrative production in the letter behind the authorized signature of National Bank with reasons reduction.

The current of term of administrative production renews from the date of the termination of the circumstance which entailed stop of administrative production, and in case of non-presentation of required documents / information – since the working day following behind day of the expiration determined for their representation.

The National Bank sends to bank in the letter behind the authorized signature of National Bank the decision on provision of Permission / about refusal in provision of Permission instantly, but no later than the next working day from the date of decision making, and in the presence of the reasonable reasons – no later than three working days from the date of its acceptance.

The decision of National Bank on refusal at least shall contain in provision of Permission:

1) date of filing of application and its summary;

2) actual facts of the case;

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