The national Bank of Ukraine (NBU) has started the second phase of evaluation of the stability of banks – processing of the results of the analysis of the quality of banks ‘ assets (AQR), confirmed by external audit. Started stress testing 29 banks, the press service of the NBU.
According to preliminary estimates of the financial regulator, the number of banks needing capital injections at the baseline and adverse stress test scenario, will decrease compared to the previous year.
The NBU reported that by the end of this year, banks need to form a buffer capital conservation 0.625%. It will be mandatory for every Bank since the beginning of the 2020 to begin the first phase of the introduction of the conservation buffer of capital. In the future, the buffer size will gradually increase every year until it reaches 2.5% on 1 January 2023.
“The formation of the corresponding buffer will ensure the creation of banks stock capital in excess of minimum requirements. In the future this will enable to absorb possible losses that may arise in the context of a General economic downturn, without breaching the capital adequacy ratio”, – explained in NBU.
In addition, during the second quarter also changed the methodology for determining systemically important banks published an updated list of such banks. In the future the NBU will require them to form a buffer of systemic importance, on arrangements which will warn banks.