iMoRe №93. The NBU continues to build a risk management system in banks

The major events of the round are the growing responsibility for inefficient risk management systems in banks, the simplification of the registration of international payment systems for non-residents, and new rules for providing management services for a multi-apartment building

The index for monitoring of reforms (iMoRe)

Author:

The index for monitoring of reforms (iMoRe) is +0.3 points for the period from September 3 – September 16, 2018  on a scale of  -5.0 to +5.0. The major events of the round are the growing responsibility for inefficient risk management systems in banks, the simplification of the registration of international payment systems for non-residents, and new rules for providing management services for a multi-apartment building.

Chart 1. іMoRe dynamics

іMoRe dynamics

Chart 2. іMoRe and its components in the current round

іMoRe and its components in the current round

The major event of the round

Strengthening responsibility for inefficient risk management system in banks, +1.0 points

According to the resolution No. 98 of September 7, 2018 the NBU will have the right to restrict, suspend or terminate certain types of operations of the bank if its risk management system is recognized ineffective.

Such measures of impact the NBU will use depending on the results of assessment of the viability of the business model of the bank, analysis of the actual and forecast data provided by the bank, the profit and loss account, operations related to bank entities, etc.

Chart 3. Value of іMoRe components and number of events

іMoRe and its components in the current round

(Please see other charts on the website)

Note: Index for Monitoring Reforms (iMoRe) from VoxUkraine aims to provide a comprehensive assessment of reform efforts by Ukraine’s authorities. The Index is based on expert assessments of changes in the regulatory environment in five areas:

  1. Governance
  2. Public Finance
  3. Monetary system
  4. Business Environment
  5. Energy

For details please visit imorevox.org.

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Disclaimer

Автор не є співробітником, не консультує, не володіє акціями та не отримує фінансування від жодної компанії чи організації, яка б мала користь від цієї статті, а також жодним чином з ними не пов’язаний