Business community applauds NBU decision to issue licenses to non-banking financial institutions

2 May, 01:50 PM
EBA Executive Director Anna Derevyanko (Photo:Олександр Медведєв / NV)

EBA Executive Director Anna Derevyanko (Photo:Олександр Медведєв / NV)

Ukraine’s business community is applauding the National Bank of Ukraine (NBU) for the timely issuing of licenses to non-banking financing institutions to allow the transfer of national currency and for the transparency in including them in the Payment Infrastructure Register, the European Business Association (EBA) said in a statement on May 1.

“Yes, as of May 1, we can state that the business has received the relevant licenses,” the statement says.

“Moreover, the Association fully supports the NBU’s position. After all, only companies that fulfill the requirements of Ukrainian legislation should work on the market. A transparent, reliable, and solvent market of financial payment services is what our country is heading towards, and we, as the Association, contribute in every possible way and are ready to further contribute to the achievement of this goal,” said EBA Executive Director Anna Derevyanko.

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“Moreover, 20 companies have already received licenses (according to the published information), which means that the requirements can be met, and not only by large businesses. And, in general, I’m sure that, thanks to the regulator’s effective work, both the market and the payment infrastructure, as well as the entire banking system will continue to develop.”

A total of 94% of money transfers within Ukraine were made through transfer systems created by non-banking institutions in 2022. Issuing licenses is an extremely important step for preserving the possibility of making payments using the non-bank financial institutions’ services and for preserving the indicators of cashless payments, the EBA said.

Ukraine is seeing a tendency for payment services users to prefer online payments, the EBU noted. In particular, online payments for goods and services continued to grow in the second half of 2022 and accounted for more than a quarter in terms of quantity and almost a fifth in terms of amount by the end of the year.

The business community expressed concern in late April that non-banking financial institutions were at risk of not getting licenses by May 1.

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