A draft law on credit unions has passed its first reading in the Ukrainian parliament.
The measure was developed by legislators in collaboration with the National Bank of Ukraine (NBU), after engaging with the World Council of Credit Unions (WOCCU) International Advocacy team and the Credit for Agriculture Producers (CAP) Project, a four-year project funded by USAID and implemented by WOCCU.
The proposals would allow credit unions to expand their range of financial services. The law would also improve licensing and corporate governance requirements in credit unions and increase the level of capitalisation and stress resilience of credit unions to strengthen the reliability of the sector and consumer confidence in it.
Credit unions would also be allowed to host remote annual general meetings. The bill introduces a risk-oriented approach to the supervision of credit unions and introduces a system of early risk prevention.
WOCCU welcomed the passing of the law in its first reading and pledged to continue to work with parliamentarians, along with the CAP Project and other stakeholders to prepare the necessary amendments for the draft law’s second reading and final passage.
The draft bill, which would update the current law on credit unions, must pass a second reading in order to be adopted.