Banking system: onset of rise and development

On 20 March 1991, the resolution of the Verkhovna Rada of the Ukrainian SSR was adopted entitled «On Procedure of Enactment of the Law of Ukrainian SSR "On Banks and Banking Activity"», pursuant to which this Law took effect on 1 May 1991.

Said resolution declared ownership by Ukrainian SSR of the Ukrainian Republican Bank of the State Bank of the USSR, the Ukrainian Republican Bank (affiliate) of the State Commercial Industrial-constructional Bank «UkrPromBudBank», the Ukrainian Republican Bank of the Savings bank of the USSR, and the Ukrainian Republican Bank of the ForeignEconomBank of the USSR together with their network, computing centers, all assets, liabilities, as well as the Ukrainian Republican Department of Encashment of the State Bank of the USSR with the network of establishments and organizations subordinated to it.

The National Bank of Ukraine was resolved to be created on the basis of the Ukrainian Republican Bank of the State Bank of the USSR.

Article 7 of Resolution of the National Bank of Ukraine directed to establish no later than 1 November 1991 a procedure for issuing licenses to banker's establishments authorizing to fulfill transactions in foreign currency within the Ukrainian SSR and abroad and to reconsider all the issued licenses authorizing the fulfillment of these transactions, as well as to implement re-registration of all the banks, their affiliates, and other credit establishments located on the territory of Ukraine.

On 7 October 1991, the Statute of the National Bank of Ukraine (NBU) was approved by a resolution of the Presidium of the Verkhovna Rada of Ukraine. The NBU was acknowledged as a state establishment accountable to the Verkhovna Rada of Ukraine.

The administrative body of the National Bank is the Board, which

• considers the conditions of monetary circulation and develops propositions concerning the principal directions of state monetary-credit policy subject to approval by the Verkhovna Rada of Ukraine;
• sets the level of reserve requirements, the economic norms of the activity of commercial banks and interest rates on credits that are provided to banks;
• affirms regulatory documents related to the competency of the National Bank of Ukraine.

Date: 2015-01-11; view: 1122