Ukraine: Regulation weaknesses underline need for deeper financial reform

Nick Kochan delves into Ukraine’s regulation of its financial sector and the approach its banks are taking to fraud. He finds that, despite appearances, the country and its banks have a long way to go before their controls meet the high standards expected in the West

Ukraine has developed a system of regulation and compliance that ticks all the right boxes for the international investment and regulatory community. There might be concerns about the strength and viability of the country’s economy but, as far as the rules are concerned, the external observer would see Ukrainian banks compliant and well regulated. For example, the National Bank of Ukraine (NBU), which oversees the banking system, has ensured all banks are compliant with Basel I and II, banks