WOCCU Credit for Agriculture Producers’ (CAP) Project Helps National Bank of Ukraine Set Regulatory Framework for Credit Unions
CAP Project promotes knowledge-sharing between new Ukrainian regulator and European peers
November 10, 2020
MADISON, Wis.—World Council of Credit Unions’ (WOCCU) Credit for Agriculture Producers’ (CAP) Project is supporting the National Bank of Ukraine in its revision of the country’s credit union regulations by employing its expert analysis, and facilitating a series of meetings with regulators in neighboring countries to align the regulations with European Union (EU) standards and best practices.
The National Bank of Ukraine (NBU) became the country’s new credit union market regulator on July 1, 2020, and has since been working to revise specific laws and regulations to ensure they are fully applicable to Ukrainian credit union operations.
To support the NBU, the CAP Project has organized a series of presentations and meetings for NBU employees with credit union regulators from Moldova and Lithuania, who have provided in-depth overviews of their national credit union systems, as well as legal, supervisory and regulatory specifics. Poland’s National Association of Co-Operative Savings and Credit Unions (NACSCU) also provided an overview on the Polish structure for small and large credit unions and their supervision under Polish law.
In addition, WOCCU Senior Vice President of Advocacy Andrew Price analyzed the new wording of the credit union draft law published on the NBU website and provided extensive feedback.
Critical regulations are now being finalized based on Price’s analysis and the meetings with European regulators to reflect best practices in areas such as:
- proportionality in regulation;
- deposit guarantee scheme;
- reporting structure;
- services expansion;
- accounting standards;
- capital requirements; and
- corporate governance.
The final regulatory revisions will also seek to reflect the specific credit union market situation in Ukraine and ensure effective, safe and sound regulation and supervision to help the credit union sector grow and better serve a wider population.CAP’s support of the NBU will continue going forward, with further EU expert engagements expected. The NBU’s new draft law on credit unions is expected to be completed in the coming months.
World Council of Credit Unions is the global trade association and development platform for credit unions. World Council promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions' financial performance and increase their outreach.
World Council has implemented 300+ technical assistance programs in 90 countries. Worldwide, 86,055 credit unions in 118 countries serve 291 million people. Learn more about World Council's impact around the world at www.woccu.org.