NBU to finish stress tests of banks in H1 2017

NBU to finish stress tests of banks in H1 2017The National Bank of Ukraine has started stress tests of the next 20 largest Ukrainian banks, acting Deputy NBU Governor Kateryna Rozhkova has said.

"We've started stress tests for the next 20 largest banks," she said at a conference devoted to the development of small and medium-sized banks in Ukraine organized by the Independent Association of Banks of Ukraine (IABU) on Monday.

Rozhkova said that according to the schedule the field inspection will be conducted by May 12, and for the next 20 banks ľ by September 12. Stress tests of the rest of 57 banks will be conducted in the first half of 2017.

She also said that the term for achieving the zero level for capital adequacy for the second and third 20 banks is set at May 1, 5% of first tier capital adequacy is by October 1, 2016.

Rozhkova said that the need to additionally capitalize banks is high. A total of 43 banks have charter capitals worth over UAH 300 million, 16 banks have internal reserves to observe the minimum capital requirement by the term required, and 51 banks are to search for the reserves to boost their capital.

She said that the share of overdue debt of banks in their balance sheets as of February 22 was 21% (7.7% as of July 2014), while the real figure could be much bigger.

Head of the IABU council Roman Shpek said at the conference that as of February 1, 2015, 20 banks did not meet the charter capital requirement of no less than UAH 120 million and banks are to meet the requirement by June 17, 2016. He said that the additional capitalization of UAH 690 million is required. In 2016, 71 banks would require additional capitalization, Shpek said.
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