OREANDA-NEWS. June 07, 2013. According to the NB, the regulations are worked out due to recent amendments to Law on Financial Institutions, which aimed to reform the legal base with regards to shareholders.

The new regulation brings more details to existing regulation; it will allow bank owners controlling the activity of shareholders more effectively. The document has the following notions in it: dominant impact on human, close links, and people acting in agreement.

The regulation also monitors the preliminary permits by the NB to buy or increase the bank’s capital. It established the assessment criteria for potential purchasers and shareholders quality as well as it monitored the steps by the NB in case when the share of shareholders did not correspond to the legislation requirements.

The Regulation on shares in bank’s authorized capital is worked out according to best European standards and practices; it has all the necessary tools to detect the shareholders work quality to prevent the risks and instabilities in banking system.