Good day! Of course, I will help you understand this resolution.
1. **Essence of the law:**
The resolution amends the previous NBU resolution No. 23 dated February 25, 2022, which concerns the activities of banks under martial law. It aims to mitigate the consequences of banks’ violations of prudential regulations caused by the military aggression of the Russian Federation, provided that banks implement capitalization programs. In fact, the NBU gives banks the opportunity to restore their financial stability without applying strict measures of influence for violations of regulations, if they are ready to adhere to the capital recovery plan.
2. **Structure and main provisions:**
The resolution amends resolution No. 23, excluding some clauses and changing the numbering. Key is clause 2, which allows the NBU not to apply sanctions to banks for violations of prudential regulations if these violations arose due to military aggression, and the bank has submitted and is implementing a capitalization program agreed upon by the NBU. Also, the resolution defines the requirements for the capitalization program and establishes restrictions on the activities of banks that fall under these provisions (for example, restrictions on the payment of bonuses to management, the purchase of securities, etc.).
3. **The most important provisions for use:**
* Banks that have violated prudential regulations due to military aggression have the opportunity to avoid sanctions by submitting a capitalization program to the NBU within three months from the date of entry into force of the resolution.
* The capitalization program should contain a clear action plan to restore regulations, justified deadlines and calculations of the economic effect.
* Banks that take advantage of this opportunity must comply with the restrictions established by the resolution, in particular, regarding the payment of bonuses, the purchase of securities and other transactions.
* The NBU will monitor the implementation by banks of both restrictions and capitalization programs.
This act concerns banking activities under martial law.
