National Bank of Ukraine Annual Report 2018 UA EN CentralBanking.com The NBU has received the Central @CentralBanking_ The @CentralBanking_ Banking’s Transparency Award Transparency Award 2019 #CentralBankingAwards #NBU #TrasparentNBU goes to ... @NBUkraine @NBUkraine_eng #CBawards Annual Report http://ow.ly/HD7a30np6sp 2018 NationalBankUkraine @NBUkraine_eng Today the #NBU is to receive our first ever international Central NBU Strategy Banking Award #CBAward #NBU #Strategy #Actionplan #IndependentNBU for Transparency. The award ceremony has already started in London. The Governor Yakiv Smolii is there & ready to express gratitude on behalf of central bank’s team. Roman Waschuk @WaschukCanUA .@NBUkraine awarded top global Currency liberalization honours for #transparency #NBU #oncurrency #liberalization by @CentralBanking_ magazine. #Canada has been lead donor in supporting this transformation | Transparency: National Bank of Ukraine - Central Banking The extent of the .@NBUkraine leap ahead in #transparency? “This has put it well beyond the The National Bank of Ukraine is a modern, open, standards of some central banks in neighbouring countries, and independent central bank enjoying public trust including some Eurosystem central banks.” and integrated into the European community of national Follow us Like Comment Share central banks Regulating Payment Systems NationalBankUkraine The NBU’s Key Performance Indicators in 2018 Oversight of Payment Systems @NBUkraine_eng National Bank of Ukraine releases The NBU as an Apolitical Institution Regulation of Cash Circulation the #NBU Strategy. "We will continue to devote our efforts in ensuring price and financial 5 Free Movement of Capital stability, and together with the Governance financial sector foster the economic growth," noted the NBU Governor Development of Capital Market Infrastructure Yakiv Smolii: https://goo.gl/6Uvxtw Address by the NBU Governor 6 Financial Inclusion Address by the Chairman of the NBU Council NBU Board Providing Ukrainian Citizens with Access to Financial Services Organizational Chart of the National Bank of Ukraine Payments and Settlements Implementation of the Comprehensive Program for the NBU System of Electronic Payments Development of Ukraine’s Financial Sector until 2020 PROSTIR National Payment System Promoting Innovation in Ukraine NationalBankUkraine @NBUkraine_eng Meeting Strategic Goals Enhancing Financial Literacy From now on you can read speeches of the #NBU Governor Money Museum and Board members on the BIS 1 Low and Stable Inflation website along with other central 7 A Modern, Open, Independent, and Effective Central Bank bankers' speeches: https://www. bis.org/list/cbspeeches/index.htm … Monetary Policy and Macroeconomic Developments Ensuring Cash Circulation Bank for International Settlements Monetary Transmission Mechanism @BIS_org Research at the NBU CB speech: Smolii (UA): The Floating Exchange Rate and FX Interventions National Bank of Ukraine's key Work with Government Authorities achievements in 2018 and action plan for 2019 - https://www.bis. 2 A Stable, Transparent, and Effective Banking System org/review/r190128b.htm … Cooperation with International Partners Banking Sector Performance NBU Communications Strategy NationalBankUkraine Transition to Risk-Based Supervision and the Annual Assessment Managing Human Capital @NBUkraine_eng of Resilience The #NBU has presented beta Modernizing the Reporting System and Ensuring Open Data version of the new NBU site. Harmonizing Bank Regulation with Basel and EU Directives Closing of the old version of the Internal Audit site and full transfer to the new site Information Security and Cyber Defense in Banks are scheduled at the end of this year. For now, it is only available in Introducing Macroprudential Policy Ukrainian. English version will be Risk Management System added soon: https://goo.gl/yNDZfL 3 Resumption of Lending Prptection of Creditors’ Rights Consolidated Financial Statements Creating a Credit Register Key Financials of the National Bank of Ukraine 4 Effective Regulation of the Financial Sector Converting to IFRS 9 Follow us The Future of Nonbank Financial Sector Regulation Consolidated Financial Statements Consolidated Management Licensing Nonbank Financial Institutions Report for the Year Ended 31 December 2018 National Bank of Ukraine Annual Report 2018 UA EN The NBU’s Key Performance Indicators in 2018 #NBU #achievements #2018 The NBU’s Key Performance Indicators in 2018 The NBU as an Apolitical Institution Governance Meeting Strategic Goals Risk Management System Consolidated 100% 77 9.8% 3.3% 10.2% Financial Statements Transparency Number of Inflation Real GDP Ratio of cash of the banking operating banks outside banks system to GDP 20.8 10.1% 7.6% 21.7 134 USD billion UAH 540.1 billion UAH 614.0 billion UAH billion UAH billion International Domestic Domestic Banking Regulatory reserves currency deposits currency loans sector profit capital of banks Follow us Previous 3 Next National Bank of Ukraine Annual Report 2018 UA EN The NBU as an Apolitical Institution External audits are another lever of control over the NBU’s activities. As an institution that adheres to international standards for central banks, the NBU undergoes external audits regularly. Under Article 70 of the Law of Ukraine On the National Bank of Ukraine, the external audit is The NBU’s Key Performance conducted with regard to: Indicators in 2018 ■ annual financial statements. This audit is conducted by an audit firm The NBU as an Apolitical with experience auditing central banks (the NBU Council approves Institution the selection of an audit firm and the results of the audit of annual Governance financial statements conducted by the firm) Meeting Strategic ■ reconciling the NBU’s administrative expenses to planned expenses. Goals The Accounting Chamber of Ukraine monitors the transfer of funds to Ukraine’s state budget. Risk Management System Publicity and accountability constitute the last element of control over Consolidated The NBU’s operational goals have been set by the Constitution the central bank’s activities. Accountability is a basic principle of the Financial Statements of Ukraine, the Law of Ukraine On the National Bank of Ukraine, and the NBU’s activities and is clearly outlined in the Law of Ukraine On the NBU’s strategic documents, in particular the Monetary Policy Guidelines National Bank of Ukraine. As a government institution, the NBU is for the current year and for the medium term, the Strategy of the NBU, accountable to the public. The NBU reports to the president of Ukraine, the Action Plan, and others. The NBU is working to deliver its mandate, to parliament, including to parliament’s Finance and Banking Committee, which is to promote price and financial stability in order to facilitate and to the NBU Council, and posts all necessary reports on its website. economic growth. For the central bank to work effectively regardless of the political cycle, Like Comment Share the Law of Ukraine On the National Bank of Ukraine clearly stipulates the NBU’s institutional independence and its institutional capacity, which is based on strategic planning, a systematic approach, and collaborative decision-making. The NBU’s institutional capacity is also safeguarded by a system of checks and balances, which ensures the allegiance of the NBU’s leadership remains with the public while retaining its independence. That system is based on the distinction between the managementof operations (carried out by the NBU Board) and control (carried out by the NBU Council, whose members are appointed by the Verkhovna Rada of Ukraine and the President of Ukraine). Under Ukraine’s Constitution, the NBU Council’s main tasks are to develop Monetary Policy Guidelines and oversee the implementation of monetary policy. In addition, the NBU Council oversees the NBU’s internal control system. Follow us Previous 4 Next National Bank of Ukraine Annual Report 2018 UA EN Most importantly, the Verkhovna Rada adopted the Law of Ukraine On Governance Currency and Currency Operations, which enshrines the free movement #NBU #faceofNBU of capital. This law kickstarted Ukraine’s long-awaited transition from The NBU’s Key a punitive, convoluted, and obsolete system of currency regulation Performance to a new model based on the free movement of capital that is liberal, Indicators in 2018 transparent, and modern, and one that meets European standards. Governance Second, after two years, the banking community has finally secured a greater protection of creditor rights after the adoption of the Law of Address by the NBU Address by the NBU Governor Governor Ukraine On Resumption of Lending, which aims to ease access to loans for households and businesses. Address by the Chairman of the NBU Council Third, the NBU launched the Credit Register to provide banks with more information about potential borrowers and thus help revitalize lending NBU Board and reinforce the banking sector’s financial resilience. Organizational Chart of the National Bank of Ukraine In 2018, Ukraine’s macrofinancial stability recovered to levels seen That would not have been possible if not for the NBU’s efforts to prior to the annexation of Crimea and the Donbas conflict. This is a maintain and develop a dialogue with stakeholders. We strongly Implementation of the clear sign that the central bank’s steady and independent policy and believe that only through openness and accountability can the central Comprehensive Program for its transparency with stakeholders