On Sep. 25, UKRN CB draft law on the bank of financial inclusion.
UKRN CB proposed to introduce a new financial institution - bank of financial inclusion.
Draft law No. 12044 on amendments to some laws of Ukraine on the development of financial inclusion in Ukraine was developed and submitted to the Verkhovna Rada.
Proposals
This initiative will improve access to financial services for the population and SMEs, especially in remote, sparsely populated areas, regions near military operations.
The bank of financial inclusion aims to leverage the infrastructure of large retail and postal companies to provide essential financial services to underserved regions.
These services are critical due to the disruption caused by the full-scale invasion.
Bank of financial inclusion (BFI) will help increase access to quality financial services, which is expected to positively impact socio-economic development in Ukraine.
The banking license for BFIs will come with restrictions, including limits on operations with large businesses and capital markets and a cap on credit available to a borrower.
To obtain BFI status, companies must meet UKRN CB regulations, provide a three-year financial inclusion strategy, and outline how they will serve underbanked areas.
In 2021, financial inclusion in Ukraine was at 84%, below the 95% target but the invasion further reduced availability of financial services, with 1.3k bank closures.
