UKRN CB Bank of Financial Inclusion


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.

Regulators UKRN CB
Entity Types Bank
Reference PR, 9/25/2024; bill 120044
Functions Compliance; Financial; Operations; Suitability; Treasury
Countries Ukraine
Category Central Bank
State
Products Banking
Regions EMEA
Rule Type Proposed
Rule Date 9/25/2024
Effective Date 9/25/2024
Rule Id 227526
Linked to N/A
Reg. Last Update 9/25/2024
Report Section International

Last substantive update on 09/30/2024