Changes To Banking Law

Parliament has amended the Law on Banking to allow banks to hold up to 10% of their assets in real estate (excluding bank office buildings) and removing the provision restricting bank investments in shares of industrial companies to 10% of banks' capital and 15% of company's shares as well as prohibiting banks from participation in other banks. Another significant change includes a ban on establishment of unincorporated foreign bank branches (filials) in Ukraine and the increase of minimum bank capital to ECU 1 min to be phased in by 1 January 1998. The capital of banks with foreign participation must be at least ECU 3 min and ECU 5 min for 100% foreign-owned banks. (Law No 24/96 of 1 February 1996)