What will happen to monobank: the NBU has made an important statement
Andriy Pyshnyy, Governor of the NBU, made this statement in an interview with The Kyiv Independent.
According to Andriy Pyshnyy, monobank is not a separate banking institution but operates under the licence of JSC ‘Universal Bank’. It is the bank that is subject to supervision by the National Bank and is responsible for complying with all requirements of banking legislation.
The NBU Governor also noted that Oleg Gorokhovsky, a co-founder of monobank, is not among the executives of ‘Universal Bank’ over whom the National Bank exercises regulatory oversight.
What might change
Pyshnyy reported that the National Bank has already approved new requirements for third-party risk management in accordance with agreements with the International Monetary Fund.
This concerns banks that engage external companies to perform critical functions. Such rules form part of the process of aligning Ukrainian legislation with European Union standards.
“We also cannot reduce the issue of third-party risk management to a single individual. That would be incorrect, as this risk is complex,” said Pyshnyy.
According to him, once the relevant EU regulations are fully implemented, these requirements will apply to many Ukrainian banks, not just monobank’s business model.
Who is responsible for monobank’s customers
The NBU emphasised that it is JSC ‘Universal Bank’, which holds a banking licence, that bears responsibility towards depositors, customers and the regulator.
Therefore, all requirements regarding capital adequacy, liquidity, financial monitoring, risk management and banking supervision apply specifically to ‘Universal Bank’.
What is known about monobank
monobank is Ukraine’s largest neobank, operating under a licence held by Universal Bank. According to the company, the service has over 10.5 million customers.
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