Central banks of Lithuania and Ukraine will strengthen cooperation in the field of financial innovation
The Bank of Lithuania and the National Bank of Ukraine have agreed to work together to facilitate development of financial innovations. The Co-operation Agreement in the Area of Innovation Development between the two institutions was signed on the sidelines of Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group being held in Nusa Dua, Indonesia, where Fintech issues are discussed at the highest level for the first time.
“Given the avid interest from our Ukrainian counterparts and the knowledge we have acquired as part of our successful cooperation with the Monetary Authority of Singapore, we stand ready to share the best practices in developing a FinTech-conducive regulatory environment, providing consultations to innovation-oriented market participants and paving the way for more convenient mobile payments,” said Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania.
“We are pleased to expand fruitful cooperation with the Bank of Lithuania on the direction of innovation in finance. I am confident that the Bank of Lithuania will achieve its strategic goal and become the main FinTech hub in the North-Baltic region. A lot has already been done for this, and we will be glad to take on the successful experience of our Lithuanian colleagues. In turn, one of the strategic goals of the National bank is financial inclusion, a qualitative breakthrough for which is offered by modern technologies – digital, online and mobile financial services. Our goal is to achieve a greater financial inclusiveness of Ukrainian society at the expense of the FinTech development as well,” said Yakiv Smolii, the Governor of the National Bank of Ukraine.
The cooperation agreement will allow both central banks to exchange experiences in FinTech regulation and supervision, explore joint innovation projects and develop FinTech-friendly regulatory environment.
FinTech issues were included in the agenda of the IMF-World Bank Annual Meetings in view of IMF’s aim to play an active part in the field of financial innovations. The IMF seeks to foster a more unified and coordinated international approach to FinTech-related issues, provide advice on and help with financial regulation, analyse the impact of financial innovations to global capital flows and financial stability.
The FinTech Co-operation Agreement between the Bank of Lithuania and the Monetary Authority of Singapore was signed this March.
To add, the Bank of Lithuania has been selected as the winner of the Catalyst Award in the FinTech & RegTech Global Awards 2018 organised by Central Banking, an international journal. The judging panel was impressed with the central bank’s broad-based approach to FinTech, and particularly with its achievements in creating an environment favourable to the development of financial technologies.
Development of a regulatory and supervisory ecosystem conducive to the provision of financial services as well as fostering innovations in the financial sector is one of the Bank of Lithuania’s strategic directions for 2017–2020. Together with other domestic institutions, the Bank of Lithuania aims to ensure that Lithuania becomes the FinTech hub in the Nordic-Baltic countries.