The national Bank of Ukraine has set requirements to ensure the stability of banks who underwent stress testing as part of the annual sustainability assessment in the current year.
This was reported on the website of the NBU.
“First, in case of detection of lack of capital on the basis of the annual assessment of Bank soundness based on the results of the stress test under the baseline scenario, banks will need to develop a recapitalization program. This program will provide a capital increase for the amount, which is defined as the maximum of two values: the amount determined by the results of the first two phases of sustainability assessment (asset quality assessment and extrapolation of the results of the assessment) and the projected amount determined according to the results of the third stage of stability evaluation (stress test) at set by the National Bank of the basic macroeconomic scenario for the year 2018”, — stated in the message NBU.
Secondly, in case of detection of additional capital requirements of the Bank on the results of the stress test under the baseline scenario in 2019 and 2020 and the unfavorable macroeconomic scenario in 2018-2020, the Bank shall develop and submit to the national Bank’s restructuring plan, which he must carry until the end of 2019. The plan should proceed from the maximum amount of the capital requirement, projected on the findings in each of the above scenarios.
The Bank is the restructuring plan until 2019, given the program of capitalization in 2018. Under the plan of restructuring measures should ultimately ensure compliance with the Bank established by the National Bank limits capital adequacy (adequacy) of regulatory capital (N2) and/or the ratio of fixed capital (H3) throughout the forecast period.
The requirements approved by the resolution of Board of National Bank of Ukraine dated 14 August 2018 No. 94 “On the peculiarities of the assessment of the stability of banks and the banking system of Ukraine to 2018,” which takes effect on August 16, 2018.