Maintaining Macroeconomic and Financial Stability: Regulators Report on Implementation of Ukrainian Financial Sector Development Strategy

The National Bank of Ukraine (NBU), the Ministry of Finance of Ukraine (MoF), the National Securities and Stock Market Commission (NSSMC), the Deposit Guarantee Fund (DGF), and the Ministry of Economy of Ukraine have made progress implementing the new Strategy of Ukrainian Financial Sector Development (Strategy), which was publicly unveiled in August 2023.

According to data available at the end of 2024, all indicators of strategic goals achievement have shown positive dynamics: 87% of the Strategy’s measures have been implemented in full or are being implemented on schedule.

Four measures were successfully completed:

• enlargement of the range of government bonds
• adoption of the National Revenue Strategy for 2024–2030
• improvement of corporate governance in the financial sector
• enhancement of the system of disclosure by issuers.

Thanks to the implementation of measures under the Sustainable Public Finances initiative, the most progress was made under Goal I Macroeconomic Stability: 25%. Goal II Financial Stability placed second (7%). Most measures are implemented over a long-term horizon, including the passage of legislative initiatives by the Verkhovna Rada. Relevant measures are being taken according to schedule.

In addition, key achievements while implementing the Strategy during 2023–2024 were:

• approval of the Strategy for Easing FX Restrictions, Transitioning to Greater Flexibility of the Exchange Rate, and Returning to Inflation Targeting
• adoption of the Medium-Term Debt Strategy for 2024–2026
• passage of the Lending Development Strategy
• approval of the Strategy of the Business Development Fund
• adoption of the National Financial Literacy Development Strategy until 2030
• improvement of the system of public finance management and public investment management
• conduct of a resilience assessment that includes an AQR and an evaluation of performance indicators of 20 largest banks under the baseline scenario and identifies the necessary levels of capital adequacy ratios
• passage of the Law of Ukraine On Credit Unions
• acceptance of foreign-issued securities into circulation in Ukraine, including S&P 500 securities and debt securities
• adoption of the Law of Ukraine On Agrarian Notes governing the introduction of the agrarian note, a new financial instrument of the non-issue-security type
• amendments to the Law of Ukraine On State Regulation of Capital Markets and Organized Goods Markets and Some Other Legislative Acts of Ukraine on Improving State Regulation and Supervision of Capital Markets and Organized Commodity Markets
• implementation of a pilot project to register the issue of credit-linked notes.

For details about progress implementing strategic measures to develop the Ukrainian financial market, as of late 2024, see the Report.

Meanwhile, the ongoing full-scale war and high uncertainty require that financial market regulators update their strategic measures and initiatives as new challenges and different scenarios emerge. The Financial Stability Council therefore greenlighted the update to the Strategy on 13 May 2025. The Strategy is being prepared for approval and publication.

For reference:

The NBU, the MoF, the NSSMC, and the DGF approved the Strategy of Ukrainian Financial Sector Development in 2023. 

The Strategy’s purpose is to ensure further reform of the Ukrainian financial sector to guarantee its development, sustainability, efficiency, competitiveness, global integration, resilience to challenges, and capability to facilitate the Ukrainian economy’s recovery.

The Strategy defines five strategic goals: macroeconomic stability, financial stability, the financial system’s focus on restoring the country, modern financial services, and the institutional capacity of regulators and the DGF. These goals are broken down into 26 strategic initiatives to develop Ukraine’s financial sector. Implementing the initiatives – and ultimately the Strategy itself – involves taking a total of 99 strategic actions. To monitor the strategic goals’ progress, 11 indicators are used.