The National Bank plans to introduce restrictions on the conduct of economic activities by financial companies

National Bank of Ukraine is planning to establish restrictions on the conduct of economic activities by financial companies that are not related to the provision of financial services. For this purpose, the regulator submitted for public discussion the project of amendments to the Regulation on the authorization of financial service providers.

According to the proposed project, the financial company will have the right to carry out other economic activities only on the condition that its revenues from such activities will not exceed 20% of the total revenue of the company, according to financial statements as of July 1 and January 1 of each year.

“The specified norm aims to promote the stability of the non-banking financial market and takes into account the powers of the NBU as a regulator of this market established by the legislation of Ukraine.” – says the regulator’s message.

In addition, the document provides for the improvement of the methodology for assessing the property status of owners of significant participation in non-banking financial institutions.

We will remind you that from July 1, 2020, the National Bank of Ukraine received expanded powers and became the regulator of the non-banking financial sector, which includes financial, insurance, leasing, factoring companies, pawnshops and credit unions. Financial companies in Ukraine are institutions that provide financial services to legal entities and individuals, but do not have a banking license. Their activities are based on a license issued by the NBU.