The stage of cleansing and transition from financial repressions to financial liberalization, which has been undergone in due time by banking and non-banking financial systems of all the transformed countries, has been delayed in the financial sector of Ukraine.
We expect that by 2020 the conditions for a stable economic development of Ukraine will be created, based on the transformation of the financial sector of Ukraine into a competitive environment with an investment and innovation climate. First and foremost, we focus on the three major sectors of the financial market of Ukraine: banking sector, stock market, and insurance sector.
The main issues at the middle and final stages of the transformation of banking systems, characteristic of the Ukrainian banking sector, as defined by the World Bank, are the following:
Along with the reforms aimed at addressing these issues, Ukraine needs to bring the practices in the market of pension provision and insurance in line with the international standards.
Balances of insurers need cleansing of troubled assets; risk provisions are formed too late and not in full, which is a result of the non-implementation of effective monitoring of the insurance sector on the basis of IAIS and Solvency II. Defined contribution pension system should be introduced.
As a result of the delay, the amount of long-term investments in Ukraine at the expense of long-term reserves of insurers remains extremely low.
Conditions for the protection of agricultural producers through agricultural insurance have not been shaped. Conditions for voluntary healthcare insurance have not been created, which limits the possibilities of Ukrainian citizens to provide themselves with healthcare insurance on a voluntary basis.
Consumer rights of those using the service of insurance of civil liability of vehicle owners should be strengthened, especially in view of extremely low compensation payments for damage to life, health, and working ability of traffic accident victims.
Decision-making authority: Verkhovna Rada, President.
Decision-making authority: Verkhovna Rada, Ministry of Finance, National Bank.
Decision-making authority: Verkhovna Rada.
Decision-making authority: Verkhovna Rada, Ministry of Finance.
Decision-making authority: Verkhovna Rada, National Bank, Cabinet of Ministers.
Decision-making authority: Verkhovna Rada, National Bank, Cabinet of Ministers.
Decision-making authority: Verkhovna Rada, Ministry of Finance, National Bank, National Commission for Regulation of Financial Services Markets of Ukraine.
Decision-making authority: Verkhovna Rada, Ministry of Social Policy, Ministry of Finance.
Decision-making authority: Verkhovna Rada, Ministry of Social Policy, Ministry of Finance.
Decision-making authority: Verkhovna Rada, Ministry of Social Policy, Ministry of Finance.
Decision-making authority: Verkhovna Rada, Ministry of Finance, National Commission for Regulation of Financial Services Markets of Ukraine.
Decision-making authority: Verkhovna Rada, Ministry of Finance, National Commission for Regulation of Financial Services Markets of Ukraine.
Decision-making authority: Verkhovna Rada, Ministry of Finance, National Commission for Regulation of Financial Services Markets of Ukraine, National Securities and Stock Market Commission.
Decision-making authority: Verkhovna Rada, Ministry of Finance, National Securities and Stock Market Commission.