Banks in the Ukraine operate under the regulations of both domestic and international banking. Whether you want to open an account in the Ukraine or invest in the Ukraine banking community, small business owners dealing with a bank of the Ukraine should be aware of the basic regulatory guidelines in place.

The Ukraine's two tier banking system is similar to most as it has both a central bank that prints the money and numerous small for-profit banks that offer Ukrainian bank customers private banking services. When considering Banks in the Ukraine laws and regulations:

1. Comprehend that banks in the Ukraine must adhere to the guidelines and rules of the Central Bank

2. Know that banks in Ukraine utilize legal services to maintain banking law compliance

3. Understand that established rules and penalties govern international banking in the Ukraine

Action Steps
The best contacts and resources to help you get it done

Begin by learning the basics of the Ukraine banking system

Banking in the Ukraine comes under the regulatory administration of the National Bank of Ukraine (or central bank of the Ukraine). Working in tangent with the approximately 180 commercial banks, the Ukraine Central Bank issues the legal tender for the country and enforces banking law through strict regulation.

I recommend: The National Bank of Ukraine's website provides a number of links to further information about its operations, compliance methods and organizational structure. The Ukraine Ministry of Finance explains how Ukraine banks work, as well as the guidelines they operate under.

Accept assistance from legal professionals when dealing with Ukrainian banks

Whether it's choosing the right tax form or avoiding loopholes and penalties, third party advice is always good when you are dealing with new banking systems. Tax and corporate lawyers in the Ukraine can assist with avoiding problems and making wise choices.

I recommend: Known for assisting Ukraine international banks and commerce banks, Arzinger focuses its practice on internal tax and corporate law, as well as financial compliance. Jurvneshservice is the Ukraine's oldest law firm and specializes in regulation compliance and securities law.

Understand that both domestic banking and global banks in the Ukraine must follow regulations

International banks in Ukraine are under strict regulations. Understanding the basics of a heavily regulated (and strictly enforced) system will assist the business owner. Entrepreneurs thinking of establishing a foreign bank in Ukraine or placing their savings in a foreign bank in the Ukraine should carefully review their options and the laws that govern their options.

I recommend: The U.S.-Ukraine Business Council is an international organization that focuses on assisting internal companies and investors in understanding banking in Ukraine. The World Bank Group offers downloadable databases on the most recent compilation of banking regulations by country including the World Bank Ukraine database.

The growing global marketplace requires businesses expanding overseas to deal with international banking in Ukraine. Ukraine banks offer business owners the security of working with both local Ukraine banks and banks with familiar names.

Ukraine banking institutions provide clients with the ease of working with their banks. Local banks in Ukraine as well as other global banks in Ukraine give customers working internationally peace of mind.

International banks in Ukraine helps business owners expand easily to this growing global marketplace. Ukraine banks get commercial customers the products they need to establish successful businesses or expand global franchises to the Ukraine economy. Work with Ukrainian banks to:

1. Invest in the growing Ukraine economy through Ukraine international banks.

2. Understand the culture and climate of doing business in Ukraine.

3. Strengthen your business presence through banks in the Ukraine.

4. Establish your business as a competitor in the global marketplace.

Action Steps
The best contacts and resources to help you get it done

Find a private bank in Ukraine that has a trusted reputation in the global marketplace

Using a bank you know and trust helps get your business in Ukraine up and running smoothly and efficiently. Having ready access to bank accounts through ATMs and multiple locations gives you peace of mind that your finances and business transactions are secure.

I recommend: Joint Stock Bank Allonge and Raiffeisen Bank Aval have many locations throughout Ukraine for both business and personal banking.

Use a local commerce bank in Ukraine as a resource for community involvement

Working with a local Ukraine bank helps establish your business as a contributor to the local economy. A good relationship with a Ukraine banking institution gets you recognized as a trusted partner in progress in your business location.

I recommend: Finance and Credit Bank and IMEXBANK are local banks with products to serve all your business needs.

Compare banks in the Ukraine based on products offered and types of service

Each bank in Ukraine has something different to offer clients. Look for banks with a variety of savings and investment tools without excessive costs. In addition, look for banks with that specialize in helping business owners.

I recommend: Urksotsbank and VAB Group offer a wide variety of banking options, locations, products and services throughout Ukraine.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Do your homework about the culture in Ukraine before beginning a relationship with a bank of Ukraine. Finding out what you need to know about etiquette and customs help keep you from offending anyone before ever getting started.
• •  Make sure when banking in Ukraine you have a well-qualified translator or someone in your financial institution that can help you with language barriers. Ukrainian is the official language of Ukraine and having someone to help with dialects and vocabulary is a good idea.

Banks in the Ukraine are a burgeoning market following their conversion from a planned economy to a market economy. The Ukraine is now the second largest economy in the region, with Russia being the first. While there has and will continue to be some bumps during the conversion to a market economy, there are tremendous opportunities as well.

However, with opportunity comes risk — that's why it is important to understand the basic terms of doing business in the Ukraine. Once you know a few key terms related to Ukraine banking, you can then begin the in-depth research to make sound capital asset allocation decisions.

Action Steps
The best contacts and resources to help you get it done

National Bank of Ukraine

The National Bank of Ukraine is the central depository institute that controls monetary policy and labors to maintain financial stability. The National Bank of Ukraine uses monetary tools to control interest rates and currency conversion rates.

I recommend: Check out the National Bank of Ukraine's website for further details on the institution's scope and purpose.

Ukrainian Hryvnia

The Ukrainian Hryvnia is the national currency of the Ukraine. When conducting banking business in the country, it's prudent to track the Ukrainian Hryvnia conversion rate relative to the U.S. Dollar.

I recommend: Review the Ukrainian Hryvnia definition and conversion rate data at GoCurrency.com.

Prominvestbank

The Prominvestbank is one of the largest governmentally controlled banks in the Ukraine. Be sure to investigate its current stability prior to making any deposits.

I recommend: Examine the history and current state of the Prominvestbank for more information.

U.S.-Ukraine Business Council, or USBC

The U.S.-Ukraine Business Council is a private, non-profit group that promotes business activity between U.S. companies and those in the Ukraine. This entity is an excellent resource for U.S. companies seeking banking information in the Ukraine.

I recommend: Evaluate the details of the U.S.-Ukraine Business Council at the organization's website.

Ukrainian Ministry of Finance

The Ministry of Finance Ukraine is a governmental entity that regulates the country's financial industry. If there is ever a problem with a bank in the Ukraine, contact this organization for a potential solution.

I recommend: Get the details on the Ministry of Finance Ukraine available from Maps of World.

On Banks and Banking (1991) and On the National Bank of Ukraine (1996)

These terms refer to actions taken by the Ukrainian government that reformed the banking industry in the country. Before making a deposit in Ukraine, please review this legislation for industry rules and guidelines.

I recommend: The Ukrainian Observer has an excellent article that covers this banking legislation and gives a good overview of the structure of the Ukrainian banking system.

The strength of Ukraine banking was one of the reasons for Ukraine's impressive economic growth spurt over the past decade. Recent global economic volatility, however, has since caused the downgrade in ratings for Ukrainian banks. Banks in the Ukraine are supervised by the National Bank of Ukraine which functions as the central bank of Ukraine. The World Bank has a strong presence in the country as well and monitors international banks in Ukraine.

The Ukrainian banking is generally friendly and less individualistic than US banking. However, money wiring fraud is a problem as noted by the US Embassy in Ukraine.

1. Banks in the Ukraine need to be monitored for upgrades and downgrades in their banking ratings.

2. Using a translator is important for doing business and working with Ukraine banks.

3. Ukrainian banking is generally friendlier and less individualistic than US banking but be aware of criminal activities with regard to fraud as reported by the US government.

Action Steps
The best contacts and resources to help you get it done

Check the financial ratings for Ukraine banks

Financial ratings are important for banking business because they provide the basis for analyzing the riskiness of a given business venture. Banks in the Ukraine advice and ratings will change from time to time. Checking these sources every so often for new or changed information is important.

I recommend: Moody's Investor Services provides basic info for free; there are charges for detailed reports. The Ukraine Stock Exchange is another avenue for getting ratings to assess the state of Ukraine banking.

Learn the requirements for opening a bank account with Ukrainian banks

Opening bank accounts are important to doing business in another country. It is necessary to know what banks are appointed to deal with foreign currency and its rules for foreign account holders. It is also important to be aware of criminal activities that affect transferring money.

I recommend: The US Department of Commerce explains how to open a bank account in the Ukraine. And the website Doing Business also gives good instructions for opening up business accounts in the Ukraine. Check the US government's travel advisory for the Ukraine. It monitors criminal activity against US citizens and when necessary states warnings for US citizens in their dealings with wire and money fraud.

Seek out information from banks in the Ukraine that provide oversight and analysis

There are two basic banks in the Ukraine that monitor the financial situation as it affects banking and that affect all banks in the Ukraine.

I recommend: The National Bank of Ukraine sets the exchange rate, monetary policy and changes in prices for gold. World Bank Ukraine provides analysis of the Ukrainian banking within the world market. It makes projections on the economic growth and other financial analysis important for investors or business operators working in the Ukraine.