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The National Bank of Ukraine (NBU) supports the law on the development of financial inclusion and wants it to take effect as soon as possible. The NBU does not know why the president has delayed signing the law, the regulator said in response to a request from Interfax-Ukraine.
“As a party that was directly involved in its development and advocacy, the National Bank is interested in the entry into force of the law adopted by the Verkhovna Rada in early June of this year and sent to the president for signature. We recognize the importance of financial inclusion and have addressed this issue for many years,” the regulator said in response to an information request from Interfax-Ukraine.
The NBU clarified that the reasons for the delay in signing the law are unknown to the regulator, which does not have the opportunity to influence this process, even hypothetically.
The National Bank recalled that the aforementioned law clarifies its mandate and obligation to promote financial inclusion. It also introduces the concept of a “financial inclusion bank” (FIB) and the possibility of operating with a limited banking license.
The NBU noted that owners of large retail chains, gas station chains, pharmacies, and postal companies, who already have experience servicing a significant number of clients and an extensive network of locations, may be interested in obtaining a limited banking license.
Regarding Ukrposhta’s previously announced intention to create a FIB based on the First Investment Bank (PIN Bank), which has become state-owned, the National Bank stated that, should an application be received, it would be considered in accordance with the current licensing requirements.
The regulator emphasized that investors in any bank must confirm that the institution has the financial capacity to maintain its capital and liquidity throughout its operational period, and that it is engaged in profitable activity and has sufficient capital. These requirements apply to both regular banks and FIBs, and the financial stability of an institution with such social status must not be undermined.
Additionally, the NBU noted that establishing a retail bank with over 1 million clients requires substantial investments, particularly in IT systems, internal controls, risk management, compliance and financial monitoring, operational stability, and IT security.
According to the National Bank’s estimates, the investment budget for creating a retail bank of this scale will likely exceed UAH 1 billion.
However, the National Bank did not comment on the dismissal of PIN Bank’s supervisory board last week.
In response to questions regarding market interest, the NBU reported that, during the drafting of the law, postal operators in areas with limited banking network coverage and loyal customer bases, as well as banking associations representing existing market participants, expressed interest in the status of FIBs. The regulator emphasized that it would not disclose specific examples of interest due to commercial confidentiality. Due to the delay in the law’s implementation, a new round of clarifications regarding potential investors’ readiness may be required.
The NBU noted that financial inclusion development is not limited to creating FIBs. Regular banks and financial institutions can continue expanding service availability, and the regulator is planning measures to maintain financial institutions’ physical presence and develop service formats and channels.
