Legal nature of the term «business reputation» of the heads of commercial banks
Authors: Tovkun Igor , Morozova Alyona 
Published: June 2021

Problem setting. Appointing the heads of commercial banks should carefully study the business reputation of candidates, using the same criteria for evaluation and understanding of this concept. The presence of different definitions, non-uniform application of norms can lead to negative consequences in the field of management. Ukrainian legislation does not contain a single standardized definition of "business reputation", and the legislator still has disputes over what criteria to evaluate and what decisions to make if the reputation is impeccable.

Target research. To determine the essence of business reputation, to consider the need for legislative consolidation of such a concept. Consider the reasons for checking, assessing the business reputation and / or professional suitability of the head of a commercial bank. Analyze the Regulations on licensing of banks in terms of criteria and assessment of business reputation of individuals. Assess the changes proposed by the legislator on the types of decisions of the NBU after the recognition of the business reputation of the head is impeccable.

Analysis of recent research and publication. The issue of business reputation of commercial bank executives has recently become the focus of many scholars and lawyers in this field. Thus, in recent years, many works have been devoted to the analysis of the provisions on the concept, criteria and assessment of business reputation, its importance for the effective functioning of the bank. Examples of authors who pay attention to this problem are M.K. Haliantych, L.O. Krasavchykova, R.O. Stefanchuk, O.V. Khortiuk, H.F. Shershenevich and others.

Many works of foreign scientists, in particular: K. Rogoff, K. T. Jackson, C. J. Fombrun, H. Cleves, R. Vreshnok and others, are also devoted to the research of assessment and formation of business reputation.

Article’s main body. There is no single standardized definition of business reputation in Ukrainian law.

Scholars also interpret the concept of business reputation in different ways, some identify it with such categories as brand, image, brand, goodwill, reputational capital, others consider them as independent categories. We believe that regulatory consolidation is not a necessity and does not affect the level of protection of the right to business reputation and the right to compensation for non-pecuniary damage in connection with the humiliation of business reputation.

When appointing managers, the NBU assesses the reputation of candidates. The law establishes the criteria of impeccable reputation. in case of impeccable reputation, the NBU may apply or not apply to a person signs of impeccable business reputation.

Conclusions and prospect of development. We do not need to provide a definition of "business reputation" in the legislation.

We also propose that the NBU create a register of persons with an impeccable reputation to expedite decision-making and to prevent the appointment of persons with an impeccable reputation to management positions. In addition, it is considered appropriate to improve the current legislation in the provisions on the types of decisions after the assessment of the NBU business reputation of an individual. In particular, in our opinion, it is necessary to add sub-item 3 to item 80 of the Regulation on banking licensing dated 22.12.2018 № 149 and to state it in the following wording: «when The National Bank assessing the business reputation of a natural or legal person for which a sign of impeccable business reputation is identified, as defined in paragraphs 63-65 of Chapter 6 or paragraphs 67-70 of Chapter 7 of Section II of this Regulation, has the right to decide on self-assessment owners of significant participation (if any) in the requirements for business reputation».