The largest number of credit unions as at 31.12.2017 - 90 (32.4%) - provided loans
at an average weighted rate ranging from 40% to 50% per annum; almost half of credit
unions (53%) provided loans to their participants at a rate of 30 % to 50% per annum
[21]. As of March 31, 2018, only one third of credit unions - 85 (31.2%) - provided
loans at an average weighted rate ranging from 40% to 50% per annum, more than half
of credit unions (54.3%) - at the interest rate within from 30% to 50% per annum.
The evaluation of the performance of credit unions makes it possible to formulate
the vectors of its development.
Ways to ensure the development of credit unions in the context of stimulating
social and labor mobility in Ukrainian society. Among the main areas for which the
tasks for solving systemic problems in the non-bank financial services market and the
conditions for effective functioning, including credit unions, have already been
addressed: simplification of the regulatory environment by approximation to European
and international standards of regulation and supervision; protecting the interests of
consumers of financial services and restoring confidence in the market of non-bank
financial services.
A number of issues that need to be addressed in 2018 remain unresolved: the
introduction of effective mechanisms for the withdrawal of troubled institutions from
the market that do not and / or are not intended to fulfill obligations under financial
services contracts and create significant systemic risks for the market; creation of
compensatory mechanisms of protection of consumers of non-bank financial services;
strengthening requirements for the liability of owners and managers of non-bank
financial institutions for crimes committed in financial market.
The Resolution of the National Financial Services Commission dated August 10,
2017, no. 3421 approved the Plan of Phase Transformation of the Credit Co-operation
Market [17]. The plan provides for: structural restructuring of the credit co-operation
market; expansion of functions and tasks of credit unions; improvement of the credit
union management system; introduction of a system of financial rehabilitation of credit
unions and a system of guaranteeing contributions (deposits) of members of credit
unions; the introduction of effective mechanisms for the withdrawal of insolvent credit
unions from the financial services market.
In pursuance of this Plan, the Resolution of the National Financial Services
Commission dated 23.11.2017, no. 4331 approved the draft of the NatskomfinService's
Order "On Approval of the Regulations on Mandatory Financial Standards and
Requirements Restricting the Risks of Transactions with Financial Assets of Credit
Unions, and the Recognition of the Loss of the Power of the State Commission on
Regulation of Financial Services Markets of Ukraine of January 16, 2004, no. 7", which
was adopted with the aim of reducing the credit unions' insolvency risks by establishing
an adequate current the development of the market of credit co-operation requirements
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