According to the NBU , the establishment of criteria will determine the frequency of scheduled inspections of institutions.
In particular, it is proposed to establish the following criteria for assessing the degree of risk:
– state of corporate governance, risk management and internal control;
– performance indicators;
– compliance with mandatory criteria and standards of capital adequacy and solvency, liquidity, profitability, asset quality and risk of operations, other indicators and requirements that limit the risks of transactions with financial assets.
Each indicator and its weight in the assessment of each of the criteria is determined and calculated depending on the type of market participant: separately for insurers, credit unions, financial companies, legal entities that are not financial institutions but have the right to provide financial leasing services (lessors), pawnshops.
The assessment is carried out using qualitative and quantitative indicators.
According to the results of the risk assessment, the market participant is assigned a score: 1 ( low ), 2 ( medium ), 3 ( high ) and 4 ( critical ).
The NBU assigns a market participant to one of the four groups according to certain criteria and taking into account the types of activity, size, volume (share) in the financial services market, structure, as well as other indicators.
The NBU will assess the degree of risk and assess the social importance of the market participant once a year, no later than December 15 of the year in which the assessment is conducted. The evaluation period is the period from October 1 of the previous year to September 30 of the current year.
Currently, the draft position has been made public by the regulator for public discussion.
It will be recalled that on July 1, the National Bank received the authority to regulate the activities of non-banking financial institutions: insurance and leasing financial companies, credit unions and pawnshops under the law on the split , which provides for the division of functions between the National Bank and the NSSMC and liquidation of Natskomfinposlug .
The NBU has already launched a register of non-bank financial institutions and started accepting reports from them.
The National Bank has also developed a draft resolution on the removal of management from the management of the financial institution and the appointment of a temporary administration .
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