Volodymyr Zelenskyy signed a law on changes to the banking system

Ukrainian President Volodymyr Zelenskyy signed a law that changes the mechanisms for removing insolvent banks from the market, raises capital requirements for them, and updates the rules governing collective investment institutions.

The main goal of the law is to enhance the stability of the banking system, strengthen the protection of depositors’ funds, and create new investment opportunities.

One of the key innovations is a change in the approach to removing insolvent banks from the market.

Previously, when a bank was declared insolvent, liquidation was the most common method of removing it from the market. Now, prior to liquidating a bank, the Deposit Guarantee Fund for Individuals (DGF) will attempt to transfer its customers and operating services to another reliable banking institution.

The law also provides for a clearer division of responsibilities and coordination between the National Bank of Ukraine and the DGF.

In addition, the amount of information that the National Bank will provide to the Deposit Guarantee Fund for Individuals when dealing with troubled and insolvent banks is being increased.

The document provides for an increase in the minimum authorized capital of banks from 200 million UAH to 250 million UAH.

These changes are intended to bring Ukraine’s bank capital requirements closer to the standards set by European Union legislation.

For banks already operating in the market, a six-month transition period is provided, during which they must raise their capital to the established level.

The law also amends the rules governing the operation of collective investment institutions.

In particular, the requirement for a mandatory minimum investment amount by individuals in qualifying funds is being abolished.

At the same time, such funds will be able to purchase domestic government bonds (OVDP). This should allow for the creation of more secure investment portfolios.

Investment companies will also see expanded opportunities for growth. They will be able to merge, attract a larger volume of debt financing—up to 30% instead of the current 10%—and split or consolidate their own securities.

Thus, the law simultaneously provides for stricter capital requirements for banks, improved mechanisms for dealing with insolvent banks, and expanded opportunities for Ukraine’s investment market.

This is reported in the bill’s summary on the parliament’s website.   

Earlier, a bill was registered in the Verkhovna Rada that provides for the possibility of education in the languages of national minorities. However, the document applies only to the official languages of European Union member states.

Ukrainian President Volodymyr Zelenskyy signed a law amending the Criminal Code of Ukraine to establish liability for electronic communications fraud. Bill No. 10190, in particular, introduces criminal penalties for participation in the activities of fraudulent call centers.