The National Bank of Ukraine, in collaboration with the National Securities and Stock Market Commission, the Deposit Guarantee Fund, as well as the ministries of finance, economy, environment, and agriculture, has approved the updated Strategy for the Development of Ukraine’s Financial Sector.
This is reported by Finway
Reasons for the Update and Objectives of the Strategy
The prolonged full-scale war has led to high uncertainty, necessitating a review of the strategic tasks facing the financial sector. In accordance with the Memorandum of Economic and Financial Policy between Ukraine and the International Monetary Fund, the new strategy aims to ensure more effective and coordinated actions among regulators, promote the strengthening of macroeconomic and financial stability, attract investments, and further integrate Ukraine into the European Union.
“The implementation of the updated Strategy will contribute to enhancing the effectiveness and coordination of actions by financial market regulators aimed at strengthening macroeconomic and financial stability, attracting investments, and further integrating Ukraine into the European Union,” the regulator notes.
Main Directions of the Updated Strategy
- Strengthening Macroeconomic and Financial Stability. New initiatives are planned regarding the legislative regulation of the activities of the Entrepreneurship Development Fund, the development of a mortgage lending strategy, reforming the system of mandatory state social insurance, as well as enhancing the resilience of critical infrastructure and the digital operational resilience of the financial sector and the Deposit Guarantee Fund.
- Modernization of Capital Markets. The update of measures for the development of capital market infrastructure, alignment of the target operating model of the markets with stakeholders, consolidation of accounting infrastructure, and attracting foreign investors aim to reform the market for effective private investment attraction.
- Deepening Eurointegration. The expansion of this objective is planned through new initiatives, including “European Integration of the Financial Sector,” deepening cooperation with EU institutions, implementing program documents, active participation in the negotiation process, and the implementation of EU legal acts taking into account the recommendations of the European Commission.
The updated strategy includes a list of key indicators for the short-term perspective. Specifically, five main indicators have been clarified and four new ones added, including expanding access to remote financial and public services through the NBU’s BankID system, legislative regulation of investment fund activities, improving the system of voluntary accumulative pension provision, and strengthening ties with foreign depositories regarding recovery instruments.
The document also provides an up-to-date description of the state of Ukraine’s financial sector and its development prospects.
The Chairman of the National Bank, Andriy Pyshnyy, emphasized that the implementation of the strategy will allow adaptation to modern challenges, create a foundation for sustainable economic growth, attract private investments, and deepen eurointegration. He stressed that the integration of Ukraine’s financial sector into the legal and institutional space of the EU will open new opportunities for the development of capital markets, enhance investor confidence, and improve regulatory standards. At the same time, the National Bank aims to achieve 100% equivalence of the regulation of Ukraine’s banking sector to EU standards by 2027.