andriy pyshnyy : high - level conference for the governors of the imf constituency speech by mr andriy pyshnyy, governor of the national bank of ukraine, at the highlevel conference for the governors of the imf constituency on " central bank independence in a changing world ", organised by the national bank of belgium, brussels, 9 february 2024. * * * dear colleagues, first and foremost, i would like to thank pierre [ the governor of the national bank of belgium pierre wunsch ] and his wonderful team for the opportunity to take part in this conference and share the experience of the ukrainian central bank. i want to present for your professional judgment some conclusions made by myself and the national bank of ukraine team over the past two years. these insights have been shaped during the 716 days of the full - scale russian war against ukraine that takes place in our country but influences the entire world. on 24 february 2022, as ukrainians were jolted awake by explosions, the global order changed. this made us look at many things differently, including at the central bank's mandate and the ways of its implementation. i could tell a lot about the nbu's experience and our mandate at the times of war. however, due to time constraints, i will focus only on key issues. first, we faced the issue of security in a broad sense. our usual peaceful environment turned into the martial law reality at once. when our armed forces defended the borders on land and in the air, the foremost task for the nbu was to safeguard the functions of the national currency, guarantee uninterrupted payments, and alleviate panic. in the first hours of the full - scale war, the central bank initiated its action plan that was prepared in advance. the nbu immediately fixed the exchange rate, imposed necessary restrictions, and activated protocols for uninterrupted operation of the banking system. even in the midst of battle for kyiv, people could use their payment cards in shops, withdraw cash, and make transfers. hence, the first conclusion or insight i would like to share : in crises, we do not rise to the level of our potential occasion ; we fall to the level of our preparedness. and the level of our preparedness will ultimately determine our ability to fulfill our mandate. second, we faced the challenge of power terror and massive cyber - attacks. 1 / 4 bis - central bankers'speeches between october 2022

was discussed to limit the number of votes to the current 18. a consensus was eventually reached to set the number of votes at 21, ( 6 for the executive board and 15 for the ncb governors ). it was also decided to grant the 6 executive board permanent voting rights, as they are appointed by a special european procedure. • representativeness indicator. as the ecb is an economic and not a political body, the use of the population criterion appeared as inappropriate, even if it is used for the capital key together with gdp, and initially using exclusively gdp was favoured. however, it was increasingly found that the contribution of the financial sector, through which the ecb steers liquidity and interest rates, should also be taken into consideration. moreover, the financial criterion, in contrast to gdp or population, is not purely national, but reflects the effective contribution of the various central banks to the eurosystem. it is also in line with the experience of the american federal reserve system where no reference has been made to the relative weight of the various us states. instead, according to section 2 of the federal reserve act, the criteria are based on convenience and " customary course of business ". reflecting their importance as financial centres, the presidents of the new york and chicago federal reserve banks enjoy respectively a permanent voting right and a 50 % voting right in the federal open market committee ( fomc ), against a 33 % voting right for virtually all other fed presidents. several financial indicators such as the monetary aggregate m3, capital of credit institutions, bank deposits / loans and the total aggregated balance sheet of the monetary financial institutions were analysed. preference was given to tabs - mfi for conceptual, legal and statistical considerations. from a conceptual point of view, tabs - mfi is the broadest measure for the size of the financial sector. a legal definition exists in community law and the statistical framework is well established and consistent. • concerning the relative weights for the composite indicator, the ecb proposed in its official th th recommendation to give gdp a weight of 5 / 6, against a relative weight of 1 / 6 for tabs - mfi 2. 3. technical elements of the ecb recommendation in its recommendation, the ecb proposed a dynamic rotation model which, in the steady state, will have 21 voting rights. the executive board will have 6 permanent voting rights while the 27 governors, allocated to three groups on basis of the composite gdp - tabs indicator, will have