The Ministry of Finance of Ukraine submitted an offer to change the election mechanism of the state banks supervisory boards in order to become more independent of the Government and the President. Yesterday, the draft of the legislative changes was presented for consideration to the government committee.
The Ministry of Finance notes that this step is to approach the state banks management system to the international standards, according to which the political influence on the banks’ management is limited.
The draft initiates changes to the supervisory board of state banks consisted of seven people. The President and the Cabinet of Ministers will offer only one member to the board; the other five should be independent.
The election of independent members will be held by the specially created commission, which should include three persons from the President and three from the Government. At the same time, the candidates should be assigned by the company with at least ten years recruitment experience of the world’s leading banks management team.
Also, under the bill, the chairman of the supervisory board could be only an independent representative.
It should be noted that according to the expert opinion on the draft of the Ministry of Finance, a change of the state banks management model could result in a loss of state control over them, since the State, being the owner of the bank, will have fewer rights than the owner of a private financial institution.
The experts note that according to the new scheme the independent members of the supervisory board will be able to make a decision or vote on the carve-out of State Bank shares without representatives of the Government and the President.
Also, according to the experts, the proposed criteria for applicants do not allow the majority of Ukrainian financial sector professionals to qualify for the position. Therefore, most likely the foreigners will have the biggest chance to get the job.
Source: Nashi groshi