NBU completes the work on disclosure of ownership structure in relation to 6 banks

The national Bank of Ukraine completes work on the discovery of the real structure of ownership in respect of the six banks, according to the website of the regulator.

According to the data, the ownership structure of the two banks has signs of opacity. Including Bank «Gefest», where the national Bank is identified the controller and is considering the legalization of the ownership structure, and Bank «platinum», in which the controller acknowledged the owner of a substantial participation Gregory Gurtovoy, with the consideration of the regulator is a package of documents of the investor who intends to acquire significant participation in the Bank.

After Fitch raised the sovereign ratings on 7 Ukrainian banks to «B-«

In addition, as noted in the message, there are two Bank owners who received approval for the acquisition of a substantial participation, but bringing the ownership structure of these banks in conformity with the requirements for transparency is not yet fully completed. In particular, among these banks, «Commercial industrial Bank» and «First investment Bank», for which the regulator is awaiting the registration of ownership of the shares.

In addition, the national Bank carries out additional checks against the two banks. Is the Bank «national capital», in respect of which a number of packets received documents, the regulator has decided to ban the acquisition of a substantial participation, and the Bank also «New,» which withdrew the documents.

In addition, the national Bank has not received information from four banks on the ultimate beneficiaries. This was stated by Deputy Chairman of the National Bank of Ukraine Ekaterina Rozhkova Central European Financial Observer.

«Only 4 small Bank (less than 2% of banking system assets) are still not able to provide information about the ultimate beneficiaries. For comparison, two and a half years ago, 27% of the banking system was opaque,» he noted in this regard Rozhkova.

She noted that thanks to the efforts of the Central Bank, supported by the IMF, the banking sector was cleared of dozens of lenders with an opaque ownership structure and banks involved in money laundering and other illegal transactions.

Rozhkov added that if banks do not fulfill their recapitalization program, they will be or is declared insolvent, or nationalized.

«If banks do not fulfill their recapitalization program and reduce lending to related parties, they will have only two options — or insolvency, or nationalization, in the case of systemic banks,» she said.

Rozhkov also recalled that a significant proportion 80 of insolvent banks have been withdrawn from the market due to the loss of liquidity as a result of significant lending to related parties in the pre-crisis years.

As you know, as of 1 September 2016 in Ukraine functioned 100 banks (excluding insolvent banks), 25 of which are banks with foreign capital.

During 2014-2016 82 of the Bank was withdrawn from the market. 17 banks were withdrawn from the market in 2016, including four for the Bank’s opaque ownership structure, the three — for violation of banking legislation in the sphere of financial monitoring (liquidation). Two banks have chosen the path of self-destruction.

In total on a specified date in the insolvent were 4 banks in liquidation — 78 banks.

In March last year, the national Bank obliged the banks to provide information about their real owners and controllers, and in October issued a list of 48 banks with opaque ownership structure by requiring banks to complete the process of legalization of the owners until the end of the first quarter of 2016.

According to the NBU, the previously announced completion of the process of disclosure of the real owners of the banks until the end of the first quarter does not mean that on April 1st all owners of the banks will be revealed because documents some banks may still be on the consideration of the regulator, and while this process continues.

After Fitch raised the sovereign ratings on 7 Ukrainian banks to «B-«

International rating Agency Fitch Ratings has upgraded the credit ratings of seven Ukrainian banks, including two state banks — «Oschadbank» and «Ukreximbank» — to the national level «In-«, said the Agency. As noted, in addition to the state rankings increased banks «Alfa Bank Ukraine», «Ukrsotsbank», «ProCredit Bank» (Ukraine), «credit Agricole Bank» («KAB») and «PRAVEX-Bank», and for 6 banks the ratings Outlook is stable. The Outlook on the Bank «PRAVEX-Bank» is a negative.

«The rating upgrade state-owned Ukreximbank and Oschadbank reflects Fitch’s view that the ability of the Ukrainian authorities to provide support to these banks in case of need has somewhat improved. However, it remains limited, especially in terms of monetary support. Willingness to support the national currency is assessed as high,» — said the Agency.

Fitch noted that a key factor in a possible reduction of the ratings for these banks will be a reduction in the national ranking, if any, will be held.

«The significant weakening of the ability and/or willingness of shareholders to provide support that is not the baseline scenario for Fitch, can also lead to a downgrade,» noted the Agency.

As reported, in mid-November, the international rating Agency Fitch Ratings upgraded Ukraine’s sovereign rating to «B-» from «CCC», while assigning a «b» rating to Ukrainian Eurobonds.

To improve the rating of Ukraine was facilitated by several factors. Among them: reducing the financial pressure, growth of volume of foreign exchange reserves, and the resumption of cooperation with key creditor — the International monetary Fund and receive the third credit tranche in the amount of $ 1 billion.

After the sovereign was increased the ratings of Kyiv and Kharkiv.

However, according to analysts Fitch, for Ukraine remain very high political risks, especially the risk of escalation of the conflict in the East, as well as the risk of stopping the execution of the program of reforms endorsed by the IMF.

NBU completes the work on disclosure of ownership structure in relation to 6 banks 22.11.2016

Ноябрь 22nd, 2016 by
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