GBRW was commissioned by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) to provide advisory services in Ukraine to identify financial sector regulatory reforms that are needed to bring Ukraine into closer alignment line with the EU, within the context of the EU accession process.
Prior to the ongoing Russian invasion, Ukraine’s financial markets had been growing steadily. However, integration with the European financial market remains a challenge. With support from the EU, further alignment of Ukraine’s financial regulations and institutional frameworks is expected with the effect of increasing financial stability and investor confidence, and enhancing the attractiveness of the Ukrainian market to international business.
This project provided a comprehensive macro-sector evaluation and assessment (MSEA) of Ukraine’s financial system. The MSEA provides a detailed analysis of the current state of the sector, identifies existing deficiencies and gaps, and offers a set of recommendations. These findings are intended to support key stakeholders, the National Bank of Ukraine and the Ministry of Finance, in improving the overall financial sector framework in preparation for potential EU membership.
Key deliverables:
– Compilation of key system-wide financial indicators to assess the overall health and performance of Ukraine’s financial system.
– Assessment of the legal infrastructure governing the financial sector.
– Evaluation of financial supervision practices in the banking and insurance sectors.
– Review of the extended financial market infrastructure, including payment systems, clearing and settlement mechanisms, and digital finance frameworks.
– Assessment of financial system integrity, focusing on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) compliance and enforcement.
– Evaluation of capital market regulations, including rules governing securities issuance, trading, disclosure, and investor protection.
