The adoption of the Project is aimed at:
- accounting for changes in European banking practices to strengthen the control functions of the second line of defense;
- enhancing the requirements for the bank's board to ensure oversight over the timely prevention, detection, and resolution of conflicts of interest that may arise during the management of troubled assets;
- improving the effectiveness of the troubled asset management process by reinforcing the role of the risk management system, which is based on the distribution of responsibilities among the bank's departments using the three lines of defense model;
- ensuring an appropriate level of independence for the chief risk officer in systemically important banks in Ukraine during the management of troubled assets, taking into account the scale of operations, types, and complexity of transactions conducted by such banks.