In the baseline scenario of the stress test of the 11 Ukrainian banks require additional capitalization in the amount of 35 billion, on negative – 18 banks for nearly 74 billion UAH. This was at the briefing on 8 November said the first Deputy head of the national Bank of Ukraine Kateryna Rozhkova, the correspondent of the edition “GORDON”.
“There are a small number of banks that even in the baseline scenario violate the norms of capital. And this happens for several consecutive years. This suggests that measures taken by these banks are low, and they are more aimed at the restructuring of the balance than on the actual work to improve the quality of assets… generally speaking, according to the baseline scenario, 11 banks in need of capital increase by 35 billion UAH”, – said Rozhkov.
She noted that the main reason is the depreciation of the collateral when the collateral can’t stand on the records of the Bank, if the loan is non-performing.
Deputy head of the NBU also said that the negative scenario of the occurrence of the crisis and the deterioration of the credit portfolio as a whole for the entire sector.
“But there is another problem is very poor performance of these banks. The vast majority of these banks, unfortunately, works or unprofitable, or very low profitable, and the reason is the structure of the balance sheet,” said Rozhkov.
As reported the press service of the NBU stress testing passed 29 banks, which collectively accounted for 93% of banking system assets as of the beginning of this year. It was conducted on two macroeconomic scenarios – baseline and adverse. Horizon of stress tests is three years.