OTP Bank became the first Ukrainian bank to start buying companies’ indexed in the DJ and S&P500 for its clients
OTP Bank became the first among Ukrainian banks to act as a broker and concluded the first agreements on the international markets for the shares purchase on behalf of its clients, CEO of OTP Bank Volodymyr Mudryi announced.
As the banker highlighted, “the first transactions were concluded within the framework of a pilot project, during which OTP Bank plans to check internal processes and, most importantly, to clarify some taxation issues in case of these shares sale. After all, the possibility to buy and acquire shares for clients on global markets has been introduced quite recently, so certain discussable issues in this area still exist".
After the successful implementation of the pilot project, OTB Bank will offer such transactions to all interested Private banking clients.
“We have been long waiting for the opportunity to offer our clients investment solutions on global markets as a broker, since OTP Bank has an impeccable reputation and is fully responsible for its obligations. Now there is such an opportunity, and everyone will be able to take advantage of it soon,” Victoria Mysliva, Private Banking Head of the OTP Bank emphasized.
According to Anton Kovalenko, Director of the Treasury and Financial Markets Department of OTP Bank, the demand for such operations may become quite high, primarily for "classic" shares, in particular, of Apple, General Electric, Facebook, Netflix, Siemens and Disney.
According to him, the implementation of these transactions became possible after the entry into force the National Bank's resolution No. 62 dated June 29, which introduced the opportunity of shares purchase by a resident individuals on international markets with the help of local securities traders, including Ukrainian banks, within e-limit (200 000 euros).
“To prepare its main provisions, together with the Independent Association of Ukrainian Banks, an initiative group was created, which, besides OTP Bank, included representatives of several big Ukrainian banks and securities traders. Thanks to fruitful cooperation, it became possible to find a compromise solution to satisfy the interests of all the parties concerned - banks, traders of the securities and the regulator,” A.Kovalenko said.
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Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.
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