Draft Law of Ukraine

“On Amendment of the Law of Ukraine “On Banks and Banking”

This draft suggests subordination of a bank internal audit service to a bank supervisory board by way of introducing relevant amendments to Article 45 of the Law of Ukraine “On Banks and Banking”. Now bank internal audit service is subordinated to a bank board of directors (committee of directors).

Subordination of a bank internal audit service to a bank board of directors (committee of directors) somewhat restricts functions of the supervisory board and this, in its turn, restrains immediate settlement of urgent matters, which arise during the course of bank’s activities. Adoption of this draft will facilitate unbiased audit control and let a supervisory board control more effectively and comprehensively finance and economic activity of a bank and activities of a bank board of directors (committee of directors, in particular.