The NBU has liberated the schedule for the recapitalization of Ukrainian banks, but will hold their annual inspection
The national Bank of Ukraine changed the schedule according to which banks must increase their capital. In particular, the capital requirement is 300 million UAH moved two years later and 400 million UAH – three years later. At the same time the deadline of the capital increase to 500 million UAH remained unchanged – 11 Jul 2024.
The corresponding decision was approved by resolution of the Board of the regulator on 21 December 2017 and takes effect from tomorrow – the 23rd of December.
“Now the situation in the financial system stabilized, and the dynamics of indicators of Ukrainian banks is positive. The capital adequacy of the small banks significantly (more than twice) exceeds the standard value. According to the results of diagnostics of quality of active operations, only four banks of a small group in need of recapitalization due to the poor quality of the loan portfolio. Therefore, objective factors allowed without creating additional risks to financial stability, to mitigate the schedule of bring banks the minimum size of Charter capital and regulatory capital to established requirements”, – said the NBU.
The regulator stresses that “the key objective for shareholders and top management of small banks should be developing and reviewing business models.”
As of 11 December of this year the authorized capital less than 300 million UAH are 42 banks – half of those that operate in Ukraine.
The schedule of bring banks statutory capital and regulatory capital to the minimum size:
Amount, UAH million
Tentative schedule, dates
The actual schedule, timing
At the same time, the NBU will introduce from 1 January 2018 annual estimation of stability of banks. It will consist of three stages:
First – check by audit firms included in the Register of audit firms, the Bank’s asset quality and the adequacy of collateral for credit operations.
The second extrapolation of the results of the first stage and assessment of capital adequacy of the Bank as at the valuation date.
Third – NBU capital adequacy on the results of the stress test in the baseline and adverse macroeconomic scenarios for the three-year forecast horizon.
- the Bank
- National Bank
Saw a bug — Ctrl+Enter
Letter to the editor
The national Bank of Ukraine
Leave your comment
Leave your comment