KYIV, Ukraine.—Ukraine’s Ministry of Justice has approved a new set of financial standards, which were developed with significant support from senior experts at the World Council of Credit Unions/USAID Credit for Agriculture Producers (CAP) Project, according to the association.
WOCCU said the move sets the stage for improved strengthening, safety and soundness in the country’s credit union market—and building a foundation for long-term growth.
According to WOCCU, since 2017 its CAP Project team has facilitated a constructive dialogue between stakeholders—including world-class credit union experts, and professionals from the Ukrainian credit union market, industry associations and regulator.
“The thorough process was necessary to ensure the new financial norms provide a sound framework for the market and adhere to international and European Union (EU) standards,” WOCCU said.
What Standards Will Do
Specifically, WOCCU said the new standards will:
- Bring internal controls and accounting standards in line with international cooperative principles.
- Strengthen capital and liquidity standards—in line with Basel III reforms, but proportionately tailored for credit unions.
- Enhance regulatory reporting and oversight by the prudential regulator.
“The approval of the new regulations marks the specific commitment to international credit union standards and the general commitment around core European values toward a democratic, accountable and transparent government. With this empowering approach to regulation, credit unions will drive inclusive and sustainable development of a prosperous Ukraine,” said Andrew Price, WOCCU vice president of advocacy.