Ukrainian banks increase risks for transactions with affiliated persons in Oct - NBU

Ukrainian banks increase risks for transactions with affiliated persons in Oct - NBUThe regulatory capital adequacy (N2) for the Ukrainian banking system grew from 7.09% in September to 9.9% in October, almost reaching the upper limit of 10%, the National Bank of Ukraine (NBU) reported.

"In October the regulatory capital for the banking system in general grew by UAH 27.8 billion thanks to the withdrawal of Delta Bank from the banking system and the increase in payments to the unregistered charter capital of Pravex-Bank," the NBU said.

The regulator said that excluding insolvent banks, the N2 requirement in October was 11.7%.

"It is expected that by late 2015 some banks from the top twenty, the stress tests of which showed that their capital is not enough, are to approve the plan to settle the situation," the central bank said.

In October, the requirement for the largest credit risk for transactions with persons affiliated with banks (N9) grew from 38.6% in September to 46.36% with the requirement of no more than 25%. The NBU said that the indicator grew due to growth of the total debt on fixed and overdue deposits and credits of banks with regard to affiliated persons by UAH 19.3 billion.

The central bank said that it is actively working to reveal transactions with affiliated persons, it is drawing up and approving the scheduled for paying this debt with banks. The regulator said that three years has been given to change the situation.

In October, instant liquidity grew from 61.26% in September to 70.64%, current liquidity rose from 69.33% to 80.59%, and short-term liquidity was up from 83.8% to 88.3%.

"In general the pace of indicators shows the start of stabilization. The gradual improvement of capital adequacy and liquidity is a positive signal," the NBU said.
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