Second attempt: MPs recommend creating financial inclusion banks
21 March 11:56
The Committee on Finance, Taxation, and Customs Policy recommends that the Verkhovna Rada adopt the draft law on the development of financial inclusion in Ukraine (13018-d). This is reported on the parliament’s website, Komersant ukrainskyi informs.
The main purpose of the draft law is to create a legal framework for the emergence of a new type of financial service provider in the Ukrainian financial services market – financial inclusion banks.
What is proposed by the finalized draft law for the second reading?
– introduce a new type of bank – a financial inclusion bank, which will operate on the basis of a limited banking license, the main task of which is proposed to be servicing clients who currently do not have sustainable access to financial services (Ukrainian citizens and microenterprises in areas close to the combat zone, in the liberated territories, as well as socially vulnerable groups)
– to define the terms “financial inclusion”, “limited banking license”, “financial inclusion bank” at the legislative level, and to empower the National Bank of Ukraine to promote the development of financial inclusion;
– to provide that a financial inclusion bank will be able to provide banking and other financial services exclusively to individuals, business entities, public and charitable organizations whose annual income from any activity for the previous reporting calendar year does not exceed the amount equivalent to EUR 5 million, determined at the official exchange rate of the hryvnia against foreign currencies established by the National Bank of Ukraine, as well as to public authorities and local governments;
– to ensure a focus on the relevant target groups of clients, to restrict financial inclusion banks from conducting capital market operations, as well as to set limits on the total amount of credit funds that can be provided to one borrower, etc.
This is not the first time the idea of establishing financial inclusion banks has appeared in parliament
The first real attempt to legalize financial inclusion banks was made last fall. The Draft Law on Amendments to Certain Laws of Ukraine on the Development of Financial Inclusion in Ukraine (12044) was registered in the Parliament in September. It was drafted to implement the Memorandum with the IMF, included in the agenda of the Verkhovna Rada in early December, and… not adopted.
The draft law lacked just a few votes to continue working on it. At the time, the head of the relevant parliamentary committee, Danylo Hetmantsev , called the parliament’s decision “strange” because without the law, people and businesses in the frontline regions would not be able to receive banking services. At the same time, he announced his intention to return to the consideration and adoption of this law.
And he did. In February of this year, a new draft law on the development of financial inclusion appeared in parliament, and in March, another one. After reviewing the documents, the Finance Committee recommended that the Parliament consider the Draft Law on Amendments to Certain Legislative Acts of Ukraine on the Development of Financial Inclusion in Ukraine (13018-d).
The adoption of this law will bring the appearance of a postal bank in Ukraine closer
The idea of creating a postal bank has been circulating in government offices since 2020. The main inspirer of such a bank, of course, was Ukrposhta CEO Ihor Smelyansky. The last attempt to legalize this idea was made last fall. According to Smelyansky, the National Bank of Ukraine, the Verkhovna Rada of Ukraine, the Office of the President of Ukraine, and Ukrposhta prepared and submitted to the parliament Law No. 12044 on financial inclusion. That law was not adopted, but the new one probably has more chances.
In addition, preparatory work has been done to establish a postal bank. In January, the government transferred the shares of the nationalized First Investment Bank, previously owned by Russian oligarchs, to the Ministry of Community and Territorial Development, with the subsequent transfer to Ukrposhta. As Prime Minister of Ukraine Denys Shmyhal stated at the time, after the Postal Bank is established, it will be easier to receive assistance, social benefits, order goods and medicines, as all these services will be within walking distance.
