NBU updates criteria for assessing risk of financial service providers and their social importance

The National Bank has updated the criteria for determining the degree of risk of non-bank financial institutions and their social importance.

This is stated in the NBU message, the Ukrainian News agency reports.

The updated Regulation on establishing criteria for assessing the degree of risk from the activities of non-bank financial services market participants and their social importance, in particular:

- an assessment of the risk profile of a financial service provider has been introduced - a general, aggregated assessment of the vulnerability of a financial service provider to the risks it is exposed to in the course of its activities, and the state of their management, performance indicators and compliance with prudential requirements (including prudential standards), which is carried out according to certain criteria;

- the criteria for determining the risk profile have been clarified, in accordance with the updated prudential requirements established by the regulatory legal acts of the National Bank;

- when determining the risk profile, the risks of violation of the rights of consumers of financial services were taken into account in order to be used to assess those financial service providers in relation to whose activities such a risk is identified;

- the assessment and determination of the risk profile and social importance is applied to all pawnshops, and not only to participants/responsible persons of non-bank financial groups.

The Regulation will be used, in addition to determining the frequency of scheduled inspections, also to determine the intensity of supervisory actions.

The changes were approved by the NBU Board Resolution No. 141 of November 29, which comes into force on December 3.

As the Ukrainian News agency earlier reported, in October, 1 new player appeared on the non-bank financial services market, 30 institutions were excluded from the registers.

The number of participants in the non-bank financial market in October decreased from 926 (as of October 1, 2024) to 897 (as of November 1, 2024), the number of banks remained unchanged - 62.

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