Bank of Ukraine begins evaluation of banking system's stability

MOSCOW. April 27 (Interfax) - The National Bank of Ukraine (NBU) is starting to assess the stability of the country's banking system to determine its true condition, and will check 20 banks this year.

As Ukrainian media reported with reference to the NBU's press service, the assessment will be carried out as of April 1, 2023 in three stages. The first stage will include an assessment of the quality of assets and the acceptability of collateral for lending operations, as well as verification of the valuation of property received by the bank as collateral, and the calculation of capital adequacy ratios.

The second stage will involve the extrapolation of the results of assessing the quality of assets and the acceptability of collateral to the bank's lending operations that were not included in the sample at the first stage. The third stage will assess the bank's performance indicators under the baseline scenario and determine the required levels of capital adequacy ratios.

The assessment of the current situation in the banking system and obtaining information to determine the priorities of banking supervision are provided for by the memorandum with the International Monetary Fund on economic and financial policy dated March 24, 2023.

The total amount of net assets of the banks to be assessed in 2023 is more than 90% of the assets of the country's banking system. Among them are the largest in terms of assets, Privatbank, Oschadbank, Raiffeisen Bank, Sens Bank (former Alfa-Bank), Universal Bank, PUMB, Ukreximbank, Ukrgasbank, OTP Bank, Ukrsibbank, Credit Agricole Bank, Kredobank, A-Bank , TASkombank, Procredit Bank, Pivdenny Bank, Credit Dnepr, Vostok, MTB and Pravex Bank.

The results of the stability assessment of Ukraine's banks and the banking system are to be made public by March 31, 2024.

According to the NBU, as of February 1, 2023, there were 67 banks operating in the country.