Publication date: 11.07.2024
The procedure for obtaining a banking licence
Banking is one of the key components of the financial system of any country. It ensures the stability of the economy, support for entrepreneurship and consumer confidence. In Ukraine, banking activities are regulated by a number of laws and regulations that define the procedure for obtaining a banking licence, requirements for banks and their operation. In this article, we will review the main aspects of the procedure for obtaining a banking licence in Ukraine, the regulatory framework, requirements for applicants and the application procedure.
The regulatory framework
The process of obtaining a banking licence in Ukraine is regulated by several key legal acts:
TheLaw of Ukraine On Banks and Banking Activities:
- The main law regulating the activities of banks in Ukraine sets out the requirements for the organisation and conduct of banking operations, the rights and obligations of banks and their clients, and liability for violations of the law in this area.
TheLaw of Ukraine "On Financial Services and State Regulation of Financial Services Markets":
- Defines the legal framework for the provision of financial services, including banking services, establishes requirements for financial institutions, the procedure for licensing and control over their activities.
TheLaw of Ukraine "On Licensing of Economic Activities":
- Regulates the licensing of economic activities, including banking. It defines general requirements for licensees, the procedure for submitting and reviewing applications for licences, and the grounds for cancellation of licences.
TheCivil Code of Ukraine (CCU):
- Regulates contractual relations between banks and their clients, defines the rights and obligations of the parties, and mechanisms for consumer protection.
Tax Code of Ukraine:
- Sets out the tax liabilities of banking institutions and the taxation of banking transactions.
Resolutions and regulations of the National Bank of Ukraine (NBU):
- Establish additional requirements for banking activities, regulate the procedure for obtaining licences, reporting and control over the activities of banks.
Types of banking licences
There are several types of banking licences in Ukraine, depending on the nature and scope of services provided:
Alicence to conduct banking operations:
- Permission to carry out basic banking operations, such as deposit taking, lending, foreign exchange transactions, cash and settlement services, etc.
Licence to carry out currency transactions:
- Permission to conduct transactions with foreign currency, including the purchase and sale of foreign currency, international settlements, and the maintenance of foreign currency accounts.
Licence to conduct transactions with securities:
- Permission to conduct transactions with securities, including the issue, purchase and sale, storage and management of securities.
Licence to conduct factoring operations:
- Permit to conduct factoring operations, including the acquisition of the right to claim funds for goods delivered or services rendered.
Requirements for applicants
In order to obtain a banking licence, a business entity must meet a number of requirements set out in the legislation. The main requirements include:
Organisational and legal form:
- A banking licence can be obtained by legal entities registered as a joint-stock company (JSC) or a limited liability company (LLC).
Authorisedcapital:
- The minimum amount of the bank's share capital must meet the requirements set by the National Bank of Ukraine. At the time of application, the capital must be fully formed.
Material and technical base:
- The business entity must have the necessary material and technical base to carry out banking activities, including office premises, equipment, software, etc.
Qualifications of managers:
- The bank's managers must have appropriate education, experience in the banking sector and an impeccable reputation. Their qualifications must meet the requirements set by the NBU.
No criminal record:
- Bank managers and owners must not have any convictions for serious crimes, crimes against property, life and health, or other crimes provided for by law.
Financial stability:
- The bank must ensure financial stability and solvency, meet liquidity and capital requirements.
Procedure for applying for a licence
The procedure for applying for a banking licence includes several stages:
Preparation of documents:
- The applicant must prepare a package of documents required to obtain a licence. This package includes:
- An application for a licence in the prescribed form.
- Copies of constituent documents.
- A copy of the state registration certificate.
- Documents confirming the availability of the authorised capital.
- Documents confirming the compliance of the material and technical base.
- Qualification documents of managers.
- Certificate of no criminal record for managers and owners.
- An application for a licence in the prescribed form.
Submission of theapplication:
- The application along with the package of documents is submitted to the National Bank of Ukraine. Documents can be submitted in person, by mail or electronically through specialised portals.
Consideration of the application:
- The National Bank of Ukraine reviews the application and checks whether the applicant meets the requirements. This includes verification of the submitted documents and a possible on-site inspection at the place of business.
Decision-making:
- Based on the results of the inspection, the NBU makes a decision to issue or refuse to issue a banking licence. In the event of a refusal, the applicant is provided with a justification of the reasons for the refusal and recommendations for eliminating deficiencies.
Obtaining a licence:
- In case of a positive decision, the applicant receives a banking licence, which entitles him/her to conduct the relevant operations. The licence is issued in the prescribed form and registered in the relevant register of the NBU. Legal marketplace "CONSULTANT" will help you solve any problem! All the necessary services at any time: analysis of documents, legal analysis of the situation, legal analysis of the situation, written advice, verification of documents by a lawyer, legal analysis of documents, legal opinion of a lawyer, legal opinion of a lawyer, legal analysis. Are you looking for an online lawyer or a lawyer online? Choose CONSULTANT - a lawyer is always at your side!
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