February

There was held the Fourth Convention of AUB

There was conducted a seminar on the theme “Internal Bank Control” deliberating on the principles of audit organization by example of the Citibank.

March

There was founded a workshop on completion of the Instruction of the NBU “On Order of Regulation and Analysis of Commercial Banks’ Activities” involving specialists of the Department of Remote Supervision of the NBU, AUB and commercial banks’ specialists. According to the recommendations elaborated by the workshop a number of amendments to Instruction ¹ 10 were introduced.

There was held a joint consultation meeting between the administration of the NBU, AUB and that of commercial banks deliberating on the issues of complex approach of the NBU towards regulating commercial banks’ activities

May

There took place a joint meeting between the administration of the NBU, the AUB Council and top executives of commercial banks. Under consideration at this meeting were the issues on bank institutions capitalization, the NBU requirements as to accumulating of bank statutory funds, mutual relations between banks and insiders.

June

There was conducted an international scientific-practical conference “Economic and Legal Background of Financial and Banking Crisis in Ukraine: Ways to Prevent it and Experience of Foreign Countries”.

September

There took place a consultative meeting as to forcible conversion of state internal bonds as well as a joint consultative meeting between the administration of the NBU, AUB and that of commercial banks deliberating on the issues of bank activities under the circumstances of financial crisis.

There took place a meeting between directors of commercial banks of the city of Kyiv, regional bank unions with Mr. Valery Pustovoitenko, Prime Minister of Ukraine, Mr. Victor Yushchenko, Board Chairman of the NBU, Mr. Igor Mityukov, Finance Minister of Ukraine and Mr. Anatoly Halchynsky and Mr. Volodymyr Lytvytsky, representatives of the Administration of the President of Ukraine on the question of executing Decree ¹ 1416 of the Cabinet of Ministers and NBU of 10 September 1998 as to voluntary conversion of state internal bonds.

The seventh extraordinary convention of AUB took place considering introduction of urgent measures as to alleviation of crisis phenomena affecting commercial banks’ activities and securing liquidity of the banking system.

October

There was held a consultative meeting discussing the draft Resolution “On Bank Transactions in Bills”

A joint consultative meeting between the NBU, commercial banks and AUB took place. Discussed were the proposals made by participants of the 7 ^th extraordinary convention of the Association of Ukrainian Banks as regards regulation of commercial banks’ activities, currency position, accumulation of statutory funds etc.

The Expert Council on Bill Turnover for Collaboration was formed with the National Bank of Ukraine (the NBU) and the State Commission on Securities and Stock Market (the SCSSM) on the questions of improving legislation and regulatory documents governing bill turnover in Ukraine.

November

A meeting with the participation of Mr. Victor Yushchenko, Head of the NBU was held in course of which under analysis there were prime reasons for exacerbation of the financial crisis in August-September 1998, its impact on the banking system of Ukraine. Discussed were also urgent measures as to minimizing consequences on banks due to financial complications.

December

A panel discussion between the Association of Ukrainian Banks was held on the one part and the NBU, the State Committee on Encouraging Entrepreneurship and representatives of public entrepreneurs’ associations. Under consideration was the order of providing by banks agencies of State Tax Administration with information as to availability of money and movement on clients’ accounts (upon demand) as well as information as to conducting non-recurrent money transactions on a large scale approved by Order ¹ 415 of the State Tax Administration of August 27, 1998.

A meeting between a group of directors of Ukrainian banks and representatives of bank circles of the Russian Federation took place. Russian bankers analyzed the reasons for the financial crisis in Russia and its possible consequences for the banking system of the Russian Federation.