The banking system of Ukraine has sufficient capital and strength - NBU
Kyiv • UNN
Ukraine's banking system demonstrates stability, is ready to recover with sufficient capital to maintain profitability and lending, according to a report by the National Bank of Ukraine.
The assessment of the stability of Ukraine's banking system has confirmed the banks' ability to generate profits, increase capital and lending. This was reported by the National Bank of Ukraine in its Financial Stability Report, UNN reports.
Details
Ukraine's banking system has sufficient capital and strength, and the banking system resilience assessment and additional simulations under adverse assumptions confirmed the banks' ability to continue to generate profits, increase capital and lending
The NBU stated that the sector is sufficiently capitalized and ready to recover and implement new requirements.
According to the National Bank, the key innovations that have been in effect since the beginning of 2024 are the deduction of the full amount of non-core assets from the capital instead of 75% under the previous requirements. Also, the risk-weighted assets will include 100% of the estimated amount of operational risk instead of 50%.
In the future, banks will update their operational risk estimates and, based on current financial statements and after test calculations, will take into account the estimated market risk in their capital adequacy ratios. Starting in August, the NBU will also update the requirements for the capital structure and introduce new capital adequacy ratios.
20 Ukrainian banks have passed the stability assessment - NBU22.12.23, 16:20 • 24871 view
The estimated impact of all the planned requirements on the banks' capital, taking into account the structure of their balance sheets, is about UAH 25 billion. Banks are able to meet these requirements even with the increase in the corporate income tax rate.
The new requirements are expected to further strengthen the sector and bring it closer to European standards.