Kiev. Ukraine. Ukraine Gate – January 12, 2021 – Economy
Financial guarantor companies must ensure daily compliance with mandatory standards. This is stated in the press service of the NBU.
The National Bank reminds financial companies that have a license to provide guarantees (financial companies-guarantors) of the need to comply with mandatory financial standards on a daily basis. These are the norms of capital adequacy (K1), maximum risk per person or related parties (K2), liquidity reserve (K3), requirements for limiting the risks of the guarantor with financial assets.
Such standards were introduced by the National Commission for Regulation of Financial Services Markets in 2019. They became mandatory from May 1, 2020. According to the results of the submitted financial statements for 9 months of 2020, two thirds of financial guarantor companies out of 354 licensed did not comply with the requirements of these standards and have at least one non-compliant standard.
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Most infringing companies are not active and do not have warranty agreements in place. In this case, the financial companies-guarantors are obliged to comply with the standards, regardless of whether they carried out the relevant operations. They must have an approved internal methodology for assessing the risks of providing guarantees and their provision, developed procedures for timely identification, calculation, assessment, monitoring, control and management of risks associated with the provision of guarantees.
“Once again, we draw the attention of guarantors who plan to be active, to the need to comply with mandatory standards every day. The participants of this market had enough time to bring their activities in line with regulatory requirements, as the standards were adopted in 2019. In case of non-compliance with the standards, the National Bank has the right to apply measures of influence. Currently, there is a noticeable trend when financial guarantor companies, which do not plan to carry out relevant activities and are not ready to comply with regulations, voluntarily renounce licenses, “said Olga MAKSYMCHUK , Director of the NBU Non-Bank Financial Services Market Supervision Department.