Currently, the requirements on increasing the capital are fulfilled through additional contributions of shareholders; however, the approval of the law opens the opportunity to consolidate the banking sector through consolidation of the banks, Finance.ua reports.

As of today, in Ukraine, 37 banks should increase the authorized capital until 11 July 2017 at least to 200 million hryvnias, as it is reported on the website of the National Bank of Ukraine. The regulator noted that the Law On Simplification of Procedures of Capital Increase and Reorganization of Banks, approved today by the Verkhovna Rada, is aimed at namely such banks; however, all banking institutions will be able to use it.

According to NBU information, currently, the requirements on increasing the capital are fulfilled through additional contributions of shareholders; however, the approval of the law opens the opportunity to consolidate the banking sector through consolidation of the banks.

In addition, the reorganization of banks will be possible under the simplified procedures, the term of which will be reduced from one and half to three-four months thanks to the considerable acceleration of regulatory and corporate approvals as well as reduction of the number of documents. In addition, the approved law provides banks with the opportunity to surrender the banking license without liquidation of the legal entity and continue activities in nonbanking financial sector, having discharged liabilities to depositors and other lenders.

Today, on March 23, the Verkhovna Rada of Ukraine passed the law on simplification of procedures of the capital increase and reorganization of banks. In 2016, by the order №58 the National Bank obligated banks to increase the capital up to UAH 200 million – until 11 July 2017, up to UAH 300 million – until 11 July 2018, up to UAH 400 million – until 11 July 2019, up to UAH 450 million – until 11 July 2020, up to UAH 500 million – until 11 July 2024.

According to the estimates of bankers, the fulfillment of NBU requirements can become the impossible task for dozens of small financial institutions, due to which the process of merger and liquidation will accelerate on the banking market of Ukraine. During a three-year cleaning of the banking system of Ukraine, 91 banks, including 4 – in early 2017, withdrew from market.

Poroshenko Gives NERC Head Vovk Other 1.5 Years

President Petro Poroshenko approved the plan of rotation of the chairperson and members of the National Commission, carrying out state regulation in energy and utility services, according to which the regulator’s director Dmitri Vovk may continue at his post for other 18 months, as it is said in the presidential order dd. March 23, EP reports.

According to the rotation plan, the head of the regulator Dmitri Vovk and the member of the National Commission Ruslan Mashliakovsky are liable to dismissal not later than 18 months from the day of coming into force of the Law on NERC.

In addition, NERC members Yurii Gollyak and Volodymyr Evdokimov are liable to dismissal not later than 6 months.

NERC members Victoria Morozova and Boris Tsyganenko can work in their positions other 12 months from the day of coming into force of the law on NERC.

As known, the Verkhovna Rada approved the law ion NERC on 22 September 2016. The President signed it on November 23. On December 8, the law came into force.

NEUSRC carries out the state regulation over the activities of natural monopoly entities in electrical energy, heating, oil and gas complex, centralized water supply and sewerage systems, recycling and disposal of household waste as well as ensures adopting the price and tariff policy in these spheres.