Meeting of Oschadbank's Supervisory Board with the NBU Management on Potential External Factors Affecting the Corporate Governance System

A meeting of Oschadbank's Supervisory Board members with the NBU management, attended by representatives of international financial organizations, was convened to discuss potential external factors affecting the corporate governance in the financial sector.

The meeting was held online. All members of Oschadbank’s Supervisory Board, the Chairman of Oschadbank’s Management Board, and representatives of the EBRD, the World Bank, the EIB, and the International Monetary Fund were present at the meeting. Representing the regulator were the Governor of the National Bank of Ukraine and its officials.

One of the primary issues discussed was the criminal proceedings initiated against the Bank's Deputy Chairman of the Management Board in charge of finance, concerning a procurement-related decision.

The Supervisory Board respects the independence of Ukraine’s judicial system and law enforcement agencies. At the same time, it is a cause for concern that criminal proceedings involving potential individual criminal liability for a collective decision could undermine confidence in the corporate governance system and the country’s investment climate as a whole.

The decision in question was made in accordance with Ukraine’s sanctions and compliance policies. Such a precedent could pose a risk of further legal uncertainty for individuals who, as decision-makers, must balance the requirements of economic efficiency against the need to comply with statutory and regulatory restrictions regarding high-risk counterparties.

The NBU Governor, representatives of the regulator and international financial organizations expressed confidence in Oschadbank’s strong business reputation and consistent level of corporate governance. However, they agreed with the Supervisory Board’s position that this precedent could have a much broader impact on the perception of the corporate governance system’s significance and trust in the financial sector as a whole.

The members of Oschadbank’s Supervisory Board also unanimously assured the NBU Governor that the Bank’s cooperation with the independent regulator is carried out strictly in accordance with the law, precluding any undue influence. It was emphasized that no such influence was confirmed by an official statement from the Bank's Deputy Chairman of the Management Board in charge of finance at his meeting with members of the Supervisory Board.

Following the meeting, the participants agreed to make efforts, within the scope of their authority, to maintain high standards of corporate governance in the banking sector and to further develop it in order to enhance the investment climate in Ukraine.