NBU plans to start liberalization of foreign exchange regulation in 2017

The National Bank of Ukraine (NBU) in 2017 plans to continue to gradually ease temporary restrictions and start liberalization of foreign exchange regulation system, as well as to develop a concept for approximation of banking regulation, according to the central bank's press service.“Next year the NBU plans to move ahead with its plans to gradually ease temporary restrictions and proceed with liberalization of foreign exchange regulation. In Q1 2017, the NBU is going to present a draft law On Foreign Currency, which is intended to overcome the complexity and over-regulation of foreign exchange regulation in Ukraine and lay down new principles underlying a new regulation. Throughout next year, the NBU will develop a concept for approximation of banking regulation to recommendations of Basel Committee and EU Directives,” reads a report. Also, the central bank will develop a new liquidity requirement - LCR (liquidity coverage ratio), which would significantly strengthen the resilience of banks to liquidity shocks. In addition, the NBU plans to tighten requirements for disclosure of financial reports, which would raise the awareness of clients, analysts and media.