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Resilience assessment indicates 16 banks would need additional capital – NBU
KYIV. Sept 16 (Interfax-Ukraine) – The National Bank of Ukraine (NBU) assessed the resilience of all Ukrainian banks, and the 30 largest banks additionally underwent stress testing, most banks showed better results than a year ago, but a possible need for capital for 16 banks was revealed.
"An increased required level of capital adequacy ratios was set for 20 banks under the worst case scenario. Among them, four have capital adequacy ratios above the established target values, and the remaining 16 shall take additional measures to increase capital adequacy or reduce business risks," the NBU said on Wednesday.
At the same time, the NBU said that the number of banks, according to the results of stress testing, which revealed risks to their capital, did not change significantly compared to 2019, and the need for capital decreased significantly. In particular, under the worst case scenario, the equivalent of this need as of January 1, 2021 amounted to UAH 41.7 billion compared to UAH 73.8 billion two years ago.
According to the baseline scenario, the need has decreased by almost 85% – from UAH 35.3 billion in 2019 to UAH 5.3 billion.
"The best results this year for most banks are related to their high capitalization, maintaining an acceptable quality of the loan portfolio and a sufficient level of operational efficiency, which almost did not deteriorate due to the crisis. At the same time, the scenarios for stress testing were generally softer than in previous years," the regulator said.
The NBU added that this year, for the first time, stress testing included an assessment of the risk of loss in the value of government securities recorded at fair value.
