The banking system during the political and economic crisis in Ukraine
Currently a very common practice the National Bank of Ukraine regarding regulation of banks’ activity on the legislative level in order to stabilize the national currency “hryvnia.” National Bank almost daily basis of the Resolution of the imaginary order to stabilize the financial situation in Ukraine. On the part of the seemingly do everything possible to release Ukraine from the crisis situation and to support the banking system of Ukraine, but NO.
NBU adopted on the results of the above actions to ensure stabilization of the national currency contrary to all the laws and regulations of Ukraine since the country’s basic law – the Constitution of Ukraine, ending regulations – regulations, provisions, etc. <!- More ->
The main purpose of banking regulation and supervision – a safety and financial stability of the banking system, protect the interests of depositors and creditors (Art. 55 of the Law of Ukraine “On the National Bank of Ukraine»).
However, as the saying goes “all agents for good”, despite the need to respect human rights and protect the interests of citizens of Ukraine – depositors and persons due to life circumstances forced to buy foreign currency to repay credit obligations the banks, or the need to travel abroad more. Recently started to actively develop the economy of Ukraine shadow market in front of the National Bank of Ukraine, the legislative, executive and judicial branches of government. There is quite a logical question: who benefits and by the need? Why National Bank of Ukraine holds the growth of the hryvnia against foreign currencies and accordingly makes it impossible to purchase US dollars to banks in Ukraine?
The answer to this question is very logical and “legally justified”. Currently active elected last race result in his dream place in the ranks of the Verkhovna Rada of Ukraine, the process is said to very difficult and quite expensive. Location for this event to take cash poor candidates for deputies; usually with the help of the citizens of Ukraine and their passive income. After all, who knows whether people need bank deposits in foreign currency if they survive in difficult conditions of actual default of Ukraine, the funds necessary state and public authorities for “keeping the national currency.”
It is not important as to the National Bank of gross violations of interests of individuals and legal entities – customers of banks that do not have the capacity to manage their funds not only within every prohibitions established by the central government, but also due to the decline of the banking system as a whole . So, deliberately NBU buys foreign currency on the interbank market at inflated rate to prevent banks this mysterious process. In the future, banks are unable to meet their obligations to depositors and other bank customers to conduct settlements with the latest and selling foreign currency.
Indeed, deposits (deposits) have funds in cash or in the form of cash, in the currency of Ukraine, or in foreign currency placed by customers on their personal accounts on a contractual basis for a specified period or without specifying such period and payable to the depositor in accordance with Ukraine and laws of contract.
A good example of this terrible situation in the country is JSC “Delta Bank”, which does not fulfill obligations to customers of the bank at all. Bank officials just shrug reassure bank customers stories about refinancing, significant deposit portfolio, as well as the absence of any legal grounds for declaring the bank insolvent and bankruptcy proceedings.
It is interesting in this context the position of the NBU (on default JSC “Delta Bank”). The Central Bank of Ukraine to the repeated appeals of the citizens of Ukraine, whose rights are violated as a result of illegal actions JSC “Delta Bank”, lawyers said that the NBU has no right to interfere in the banks justify his letters to Article 5 of the Law of Ukraine “On Banks and Banking Activity” (State is not responsible for the liabilities of banks, as banks are not liable for the obligations of the state, unless otherwise provided by law or contract. The National Bank of Ukraine is not responsible for the liabilities of banks, as banks are not liable for the obligations of the National Bank of Ukraine, if otherwise provided by law or contract. State authorities and local governments are prohibited in any way affect the management or employees of banks in the performance of their duties or to interfere in the activities of the bank, except as provided by law).
And sorry, what is the state body has the right to control and regulate the activities of private banks in Ukraine?
It turns out such functions are exactly the National Bank of Ukraine. According to Part 2 of Article 4 of the Law of Ukraine “On Banks and Banking Activity” (which dared to explain NBU) National Bank of Ukraine defines the types of specialized banks and conditions for specialized bank status. National Bank of Ukraine regulates the activities of specialized banks through economic standards and regulatory support ongoing operations of these banks. National Bank of Ukraine defines systemically important banks according to the following criteria: the size of the pot, the degree of financial relationships, activities.
National Bank of Ukraine carries out regulation and banking supervision in accordance with the Constitution of Ukraine, this Law, the Law of Ukraine “On the National Bank of Ukraine” and other legislative acts of Ukraine and regulations of the National Bank of Ukraine.
In addition, the National Bank of Ukraine has the right to determine the list of other information that is important for the purposes of banking supervision of the Bank and the owner of significant share obliged to inform the National Bank of Ukraine (Part 2 of Art. 46 of the Act).
In accordance with Art. 7 of the Law of Ukraine “On the National Bank of Ukraine” National Bank has the following functions, in particular, provides banking regulation and supervision on an individual and consolidated basis, carries the approval of the statutes of banks and amendments thereto, licensing of banking activities and operations in accordance with the law, is the State Register Banks, Register of audit firms eligible to audit banks and others.
Also NBU for some reason does not take into account when providing answers to customers of the bank that it was the National Bank of Ukraine to protect the rights of depositors and other creditors have the right to establish additional requirements, including requirements to increase the level of regulatory capital or other prudential regulations regarding certain activity and financial services that the bank has the right to (Art. 47 of the Law of Ukraine “On Banks and Banking Activity”).
National Bank took over the function of the legislature or the judiciary, laws of Ukraine interprets as he pleases, argues their unlawful actions by the law, which does not be applied in this case.
Maybe should put an end to such actions of the National Bank of Ukraine ….
All investors who have suffered from illegal actions of the National Bank of Ukraine and commercial banks in Ukraine, please help.