NBU Approves Changes in Compensation and Disclosure Rules for Banks

The National Bank of Ukraine has approved changes to the rules governing the compensation of bank employees and the disclosure of prudential information, which should bring Ukrainian banking regulation closer to EU requirements and reduce the operational burden on banks. The new regulations clarify the conditions for calculating variable compensation, allowing its maximum amount to be increased to 200% of the fixed part. The decision to increase the ratio of variable to fixed parts of compensation must be made by the general meeting of bank participants, with more than two-thirds of participants required to vote in favor. Amendments to the charter and corporate agreement are also necessary. The updated rules require taking into account the bank's performance and risks when forming compensation to avoid threats to the bank's sustainable development. The NBU has extended the deadlines for developing internal documents and the first publication of reports on the disclosure of prudential information by one year, which should reduce the operational burden and provide time for the implementation of other regulatory requirements. The changes also include the implementation of the requirements of Article 450 of EU Regulation No. 575/2013 regarding the disclosure of information on compensation policies.

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