Net sales of dollars by the National Bank of Ukraine (NBU) fell this week to $277.6 million from $457.0 million a week earlier after three weeks of increases.
According to the NBU on its website, from June 5 to June 9, 2023, its purchase of currency rose to $11.9 million from $15.1 million, while sales fell to $292.7 million from $469.0 million.
In the cash market, the dollar depreciated by about UAH 0.10 during the week – to UAH 37.15/$1.
Since the beginning of the year, the NBU bought $146.0 mln on the market, while it sold $11 bln 40.3 mln.
As reported, the volume of interventions of the National Bank in May increased to $1.93 billion, compared to $1.37 billion in February and $1.67 billion in March.
However, due to a significant influx of external financing, international reserves rose by 4%, or $1.358 billion, to $37 billion 311.3 million in May.
The National Bank of Ukraine in May fined Cominbank by UAH 10.45mn and Motor Bank by UAH 10.05mn for improper checking of new and existing clients and insufficient financial monitoring of operations.
As stated in a statement on the NBU website on Monday evening, the regulator also fined Alliance Bank UAH 1.45 million for late submission of information and documents on currency operations at the request of the National Bank, problems with internal documents on prevention and countermeasures.
In addition, Concord Bank was fined UAH 0.4 million for improper risk-based approach and Ukreximbank UAH 0.2 million for delayed provision of information.
Finally, as indicated by the NBU, Bank Lviv received a written warning for problems with internal documents on prevention and counteraction and violations in informing about suspicious activities of customers.
The National Bank of Ukraine (NBU) in May increased currency sales in the market to $1.991 billion from $1.374 billion in April and $1.674 billion in March.
According to the central bank’s website on Thursday, the volume of purchases in May rose slightly to $63 million versus $4-5 million in April-March, but still remains an order of magnitude below the volume of its sales.
As a result, as the NBU points out, its net foreign exchange interventions last month rose to $1.928 billion from $1.370 billion in April and $1.674 billion in March, but less than $2.431 billion in February and $3.082 billion in January.
According to Alexey Blinov, head of Sense Bank’s analytical department, taking into account the significant inflows of external financing, Ukraine’s international reserves in May should exceed $37 billion, while in April they increased by 13%, or by $4.07 billion – to $35.94 billion.
The National Bank of Ukraine has applied influence measures to ALC IC “Varto” and PrJSC “IC “Into” in the form of the obligation to take measures to eliminate violations and the causes that contributed to their commission.
“Measures of influence are applied due to failure to comply with the requirements of paragraphs 1 and 11 of the NBU’s board resolution “On peculiarities of registration procedures and licensing of participants of the non-banking financial services market during martial law …”, the regulator said in a statement on its website.
According to the document, it refers to written assurances of companies to the National Bank on the compliance of direct and ultimate owners of material participation to the requirements of the regulator on the financial / property status, the documents to assess such a position and subsequent responses to the NBU request.
It is clarified that the Committee on the Supervision and Regulation of Non-Banking Financial Services Markets adopted such decisions on May 29, 2023.
According to the NBU, the net earned premiums of IC “Varto” in the first quarter of 2023 amounted to 4,36 mln UAH, insurance payments – 2,57 mln UAH, net profit – near zero. Assets of the company at the beginning of April equaled UAH 39,03 mln, shareholders’ equity – UAH 34,16 mln.
The larger IC “Into” has net earned insurance premiums in the first quarter of 2023 were equal to UAH 17,67 mln, insurance payments – UAH 10,46 mln, net profit – UAH 0,28 mln. At the beginning of April assets of the company amounted to UAH 146,35 mln, shareholders’ equity – UAH 110,63 mln.
The National Bank of Ukraine on May 11 has cancelled all licenses of ALC Insurance Company Speir (Kyiv) to provide financial services.
According to the message on the website of the regulator, an unscheduled inspection carried out by the NBU in February-March this year found a repeated violation of license conditions – the insurer does not comply with mandatory standards.
The countermeasure for similar violations of license conditions to ALC “IC “Speir” was already applied on September 2, 2022.
The decision on revocation of the license shall come into force on May 12, 2023.
As previously reported, the rating agency “Standard-Rating” has withdrawn the credit rating / financial stability rating of the insurer SK “Speir” on February 9, 2023.
By results of H1 2022 ADO IC Speir received UAH 5,5 m of insurance premiums, 95% of which – from natural persons, and carried out UAH 22,8 th of insurance payments. The market share of the company according to the results of H1 2022 – 0,06%.
The National Bank of Ukraine (NBU) on May 8 applied to Kyivska Rus Insurance Company PJSC a sanction in the form of temporary suspension of its license to provide financial services in insurance due to failure to submit reports for the first half of 2022 and for 2022, as well as an actuarial report for 2022.
According to the regulator’s website, the company also failed to submit a report on corporate governance and information on the key risks and the results of stress testing for 2022, and failed to provide information and documents requested by the NBU.
The insurer has been set a deadline for elimination of violations till June 8, 2023.
Private JSC “IC “Kyivska Rus” performs activity in voluntary and obligatory types of insurance, other than life insurance.
According to the accounts of the insurer for nine months of 2022 the amount of insurance payments totaled 85,4 mln UAH of which 76,9 mln UAH were paid out by reinsurers. The insurer made no payments during the above period.
