The Cabinet of Ministers of Ukraine under the Stand-By Arrangement with the International Monetary Fund (IMF) has updated the principles of strategic reforming of state-owned banks.
“The main priorities of the regulations are to implement strategies for each bank in the public sector, protect and support the implementation of corporate governance reform with a majority of independent members in the supervisory board, reduce the share of non-performing assets on the balance sheet, reduce the position of the state, state-owned enterprises in public sector banks, and other things,” Deputy Finance Minister Denys Uliutin said at a meeting of the Cabinet of Ministers on Wednesday.
He said that the Ministry of Finance has developed an updated version of the basis for strategic reform of state-owned banks following consultations with international experts, the National Bank of Ukraine (NBU) and public sector banks.
According to NBU Governor Kyrylo Shevchenko, who was also present at the meeting of the Cabinet, the regulator supports the update of the principles of strategic reforming of state-owned banks.
“We would like to support this draft document, because, in accordance with Article 17 of the Memorandum with the IMF, Ukraine has also undertaken to update the strategic provisions. We have really worked out this document, and I want to support my colleagues from the Ministry of Finance so that it can be approved as soon as possible,” he said.
According to a report on the website of the Ministry of Finance on Wednesday, the updated principles of strategic reforming of state-owned banks provide, in particular, a decrease in the state’s share in the banking sector from 60% to 25% by 2025.
