Stress testing points to need of 20 banks for capital under worst case scenario – First deputy NBU governor

KYIV. Sept 16 (Interfax-Ukraine) – The National Bank of Ukraine (NBU) conducted stress testing of 30 Ukrainian banks, which revealed the need for capital for 10 banks under the baseline macroeconomic scenario and for 20 under the worst case macroeconomic scenario, First Deputy Governor of the NBU Kateryna Rozhkova has said.

"According to the results of stress testing, the total volume of additional capitalization of 10 banks under the baseline macroeconomic scenario is UAH 5.3 billion. Compare it with UAH 35 billion in 2019. This is seven times less. Under the worst case macroeconomic scenario, the need for capital is also lower than two years ago: then there was UAH 73.8 billion, and this year it is UAH 41.7 billion for 20 banks," she wrote on Facebook on Thursday.

Rozhkova said that this year’s worst case stress scenario was milder than the previous one, although it included a new element, in particular, an assessment of the risk of losing the market value of government securities.

"According to the baseline scenario, four banks should increase their capital by the end of this year. According to the worst case scenario, 16 banks should take measures to increase capital adequacy. We will publish the names of banks traditionally at the end of the year. Our banking system has passed this exam with an A-minus score," she added.

The quality of loan portfolios for most banks is acceptable, and the level of operational efficiency of banks after the crisis has not deteriorated.