Financial Stability Council held its second meeting
The second meeting of the Financial Stability Council (the Council) presided by the Minister of Finance of Ukraine Natalie Jaresko took place on July 31, 2015. The meeting was attended by Governor of the National Bank of Ukraine Valeria Gontareva, Head of the National Securities and Stock Market Commission Tymur Khromaev, Managing Director of the Deposit Guarantee Fund (the Fund) Kostyantyn Vorushylin, and other Council members.
The National Bank of Ukraine, together with the Ministry of Finance and other regulators, is actively involved in efforts to stabilize Ukraine's economy, address the existing problems and prevent the emergence of risks to the country's macroeconomic and financial stability. In order to identify and mitigate in a timely manner risks posing a threat to the stability of the domestic banking and financial system, the Council was established by the Presidential Decree in March 2015. The Minister of Finance of Ukraine Natalie Jaresko and Governor of the National Bank of Ukraine Valeria Gontareva serve as the Council's Co-Chairs.
At the second meeting, the Council members:
- reviewed current systemic risks facing Ukraine's financial sector;
- discussed a development strategy for state-owned banks and ways of raising standards of corporate governance in these banks;
- discussed ways of enhancing the capacity of the Deposit Guarantee Fund;
- recommended that the system of public supervision over auditors be established in accordance with EU Directives with the aim of tightening control over the quality of services provided by audit firms to socially significant businesses (public joint stock companies, securities issuers, banks, insurance companies, etc.);
-discussed the areas of the stock market infrastructure development in Ukraine.
In her opening speech, the Minister of Finance of Ukraine Natalie Jaresko said to this effect: “The meetings of the Financial Stability Council enable us to identify in a professional and comprehensive manner risks posing a threat to the stability of the domestic banking and financial system and develop effective steps to mitigate these risks. Today, we can see the first signs of our efforts and evidence that they have proved to be effective. The most recent figures suggest that the domestic economy and financial system have been put back on track through joint efforts by the Ministry of Finance of Ukraine and the National Bank of Ukraine. We are confident that further efforts by the Council will contribute to the sustainable and effective functioning of the financial and banking markets in Ukraine”.
Key facts about the Council
The Council comprises the Governor of the National Bank of Ukraine, the Minister of Finance of Ukraine, Head of the National Securities and Stock Market Commission, Head of the National Financial Services Commission, Managing Director of the Deposit Guarantee Fund, First Deputy Governor of the National Bank of Ukraine, and Deputy Minister of Finance of Ukraine.