The National Bank of Ukraine has got a new source of external support. This is a Twinning project Strengthening the institutional and regulatory capacity of the National Bank of Ukraine to implement EU-Ukraine Association Agreement, fully funded by the European Union.
The overall objective of the Twinning Project is to contribute to the macroeconomic stability of Ukraine through institutional strengthening of the National Bank of Ukraine, and building a reliable banking and payments infrastructure. The Twinning Project will indirectly aim to support NBU’s capacity to actively participate in the EU-Ukraine association process.
The project is implemented by the partners from Narodowy Bank Polski and Lietuvos bankas.
The implementation period of the Project is from 1 October 2020 to 30 June 2022. It will involve dozens of experts from Narodowy Bank Polski and Lietuvos bankas, accompanied by professionals from European Central Bank, and central banks of Greece, Hungary, the Netherlands, Portugal and Sweden. More than 100 experts, from both EU Member States and the NBU will participate in different project activities.
For the time being, due to the Covid-19 pandemic, all activities are carried out remotely.
The EU Twinning instrument was established in 1998 to support candidate and potential candidate countries in their accession efforts and was made available to the countries of the European Neighbourhood in 2004. The EU Twinning brings together experts from both the administration of EU Member States as well as the beneficiary countries.
Developing approaches to banking supervision
Representatives from the central banks of EU member states and the National Bank of Ukraine will work on further implementation of Basel Core Principles for effective banking supervision and the EU legislation. In particular, internal capital adequacy assessment process (ICAAP), internal liquidity adequacy assessment process (ILAAP), and assessment of the banks’ risk profiles through the Supervisory Review and Evaluation Process (SREP).
To achieve the mandatory result, partners will develop recommendations for ILAAP origination and implementation and they will assist in enhancing the SREP Regulation and developing Regulation for banks’ ILAAP based on EBA-compliant methodologies.
Implementing instant payments system
The project is to help develop payment systems in Ukraine and define the most suitable for Ukraine model of instant payments, its architecture and the road map for its implementation.
The project is to help develop payment systems in Ukraine and define the most suitable for Ukraine model of instant payments, its architecture and the road map for its implementation. In order to achieve the mandatory result, partners will support NBU in selecting an optimal model for processing instant payments in Ukraine with ISO 20022 and will organize the targeted training session on technical aspects of the selected model. Also an expert forum will be organized to allow the exchange of views and present best practices on instant payments architecture in partners’ national frameworks.
Improving strategic planning in a central bank
Strategic planning, process management and performance monitoring at different levels of the institution will be improved based on recommendations and practical experience of the central banks of EU member states.
To achieve the mandatory result, partners will present best practices and their experience regarding central bank’s business processes. Then, they will develop recommendations on further enhancing current strategic planning and the process-based model of planning and management at NBU.
Improving the European integration and international cooperation process of a central bank
External expertise will serve to strengthen the NBU in its international activities and cooperation, in particular in implementing the EU-Ukraine Association Agreement.
To cover this component fully, partners will present the expertise and practical experience resulting from the overall process of integration with the EU and European System of Central Banks (ESCB). At this stage, partners will share with the NBU staff the knowledge and hands-on experience of NBP and LB as regards the cooperation with International Financial Institutions (IFIs) and will prepare recommendations on enhancing cooperation of NBU with IFIs, ECB, ESCB, EBA and other central banks.
Project Leader, Adviser to the NBP President, Narodowy Bank Polski
Enormous experience in the field of economy and banking (among others in the areas of payments architecture, banking supervision, change management and strategic planning) gained during many years of work in NBP as the Member of the Board.
Junior Project Leader, Director of International Relations Department, Lietuvos bankas
Excellent knowledge of EU central banking regulations and policies, extensive international and leadership expertise as head of International Relations Department. Key responsibility for the Bank’s participation in the Eurosystem, ESCB and the decision-making process within the EU, as well as cooperation with international financial institutions and other CBs.
Beneficiary Country Project Leader, Deputy Governor, National Bank of Ukraine
Excellent knowledge in the field of international relations, monetary policy, macroprudential policy to ensure financial stability, economic analysis, collection and analysis of statistics, reporting and research. Vast experience gained during work in the International Monetary Fund’s resident representative office.
Resident Twinning Adviser (RTA), Expert in the International Department, Narodowy Bank Polski
Unique experience in developing and implementing international regulations in different areas of central banking, especially banking supervision and financial stability. Actively involved in the process of transformation of the banking system in Poland, particularly modernization and adaptation of banking supervision to the best international standards.
RTA Counterpart, Head of Office for European Integration and International Programmes, National Bank of Ukraine
Long-term experience in international relations while working for the government and the central bank of Ukraine. Position of a Deputy Head of Trade and Economic Mission at the Embassy of Ukraine to USA.
Leader for Component 1 (A), Head of Banking Supervision Division, Lietuvos bankas
Vast expertise in banking supervision. Specialist for on-site as well as off-site inspection, organisation and performance of SREP in accordance with EU/EBA/SSM regulations, and preparation of SREP reports.
Leader for Component 2 (B), Deputy Director of the Payment System Department, Narodowy Bank Polski
Extensive expertise in supervising the policy and development of payment. Co-author of regulations on accounting rules, interbank clearing and settlement systems, and participated in the payment systems reform as well as in creation of the Clearing House (SYBIR and ELIXIR systems).
Leader for Component 3 (C), Head of Performance Management Division, Lietuvos bankas
Excellent knowledge of process management establishment and implementation of performance measurement. Vast experience in coordination of annual planning of activities and budgeting.
Leader for Component 4 (D), Deputy Director of the International Department, Narodowy Bank Polski
Extensive knowledge in the area of international relations and European integration issues. Co-responsible for cooperation within the ESCB and other EU institutions and bodies.
The The NBU works with international financial institutions with the purpose of enhancing the stability of Ukraine’s financial system. While integrating into the global financial community and moving towards the European Union, the NBU coordinates its actions with international institutions and other central banks. To find out more go to the link