Ukraine’s banking law: a step forward, but not a leap

A new law prohibiting the return of banks to their former owners will unlock international funding for Ukraine. But is it really the game changer some are claiming?

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Ukraine has a new banking law. On May 21, with much fanfare, president Volodymyr Zelenskyy finally put his signature on the bill, which had been in the works since last autumn. His supporters, and many of Ukraine’s international backers, hailed it as a big step in the country’s reform process.

So, what is the new law, and why was it so important?

Briefly, it addresses the question of bank resolution, which has been a hot topic in Ukraine since the Maidan revolution of 2014.

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