The National Bank of Ukraine (NBU) continues to launch a risk-oriented approach to conducting the inspection checks of banks, according to NBU message.

The part of such approach is the renewal of the ranking system CAMELS, in particular supplementing of ranking score by the component Operational Risk and the actualization of criteria of the score.  

Since the approval of the renewed score, the National Bank has already conducted checks of 50 banks.

CAMELS gives banks and the regulator a vision of a complex assessment, during which all the activities and the significant risks of the bank will be analyzed, and the special focus is given to the corporate management and risk management and internal control systems.

The National Bank integrates the results of inspecting the ranking score CAMELSO into SREP.

“The changes also had place in our communication with banks; there appeared more openness and reasonableness from both sides. Thus, for example, we will implement the practice of discussing the inspection results with banks before submitting them for consideration by NBU Supervisory Committee. If necessary, the banks can express their position at the Supervisory Committee”, the Head of NBU’s Onsite Bank Inspection Department Denis Novikov noted.

He also informed that during the inspection, the regulator support a constant dialogue with the management and bank employees.

For 9 months 2018, NBU Bank Onsite Inspection Department conducted 18 scheduled and 12 unscheduled inspections of banks.

Previously, it was reported that the National Bank decided to permit financial companies to become banks.

For those institutions, which will want to develop and reregister into banks, will go through the transition period.