OREANDA-NEWS. By 23 December 2015, banking associations will have formulated a unified approach to forming a business reputation evaluation mechanism and the size and composition of an agency responsible for carrying out an additional assessment of former bankers’ business reputation. The decision to this effect was taken at a meeting between the NBU representatives and market participants, which was held on 8 December 2015. The meeting featured First Deputy Governor of the NBU Oleksandr Pysaruk, directors of the NBU’s relevant departments, representatives of the Independent Association of Ukrainian Banks (IAUB), Association of Ukrainian Banks (AUB), Ukrainian Credit Banking Union (UCBU), and some bankers.

“We want the banking community to take a consolidated stance on this issue. The issue of business reputation evaluation, factoring in particular circumstances, needs to be resolved. However, the use of  different business reputation evaluation  mechanisms by different associations leads to market fragmentation and contributes to the growing distrust in decisions taken by these authorities.  The NBU underlines the need for all market participants to reach a common vision, and we hope that this approach will be found by 23 December,” said Mr Pysaruk.    

So far 800 individuals have been deprived of the opportunity to become banks' senior executives, of whom 620 individuals have been disqualified for three years and 180 individuals for 10 years. There is currently no alternative mechanism to evaluate business reputation of an individual, which would take into account special circumstances or facts. 

Instead, in the event that an individual (except for qualifying shareholders) does not have an impeccable business reputation, the regulator plans to give the Supervision Committee a mandate to assess whether this person meets the eligibility criteria in terms of business reputation upon receipt of a motion from an ad hoc collegial body established by the banking community as part of self-regulation.  This collegial body shall issue opinions containing a detailed description of facts that have been investigated, justifications, and signatures of persons responsible for issuing opinions.   The NBU will stay away from the activities of the independent body.

 A draft of amendments to NBU Board Resolution No. 306, dated 8 September 2011, intended to streamline  registration and licensing procedures, particularly simplify the document issuance procedure for banks' senior managers and participants and  specify the eligibility requirements as to what fits the description of irreproachable business reputation.