The National Bank of Ukraine has approved new rules for assessing the stability of banks. The changes concern capital requirements, deadlines for their implementation, and the procedure for supervisory review. This is reported by Delo.ua with reference to the NBU.
On July 8, the National Bank adopted Resolution No. 77, which came into force on July 9. The document updates the procedure for assessing the stability of banks and the banking system in accordance with European standards. The basic assessment model has not changed – it will continue to consist of three stages. At the same time, the regulator has revised the procedure for applying the results of the inspections to determine the capital requirements for banks.
For institutions that undergo only an asset quality review by independent auditors and extrapolation of the results, it is no longer necessary to separately determine the capital adequacy ratio based on the results of this assessment. In the future, these results will be taken into account during the SREP procedure – supervisory review and evaluation.
For the largest banks that are also undergoing stress testing, the required capital level will be determined by the higher of two indicators: the results of the stress test or the general capital requirements established after the SREP.
The National Bank has also changed the deadlines for meeting the requirements. Now banks must ensure the required level of capital adequacy by the end of the year in which the sustainability assessment was conducted and maintain it until the end of the following year or until a new assessment is conducted.
If a bank fails to meet these requirements or violates them in the future, it will have to develop a capitalization or restructuring program. In addition, the resolution provides for determining the required level of leverage ratio based on the results of the sustainability assessment in accordance with European approaches. At the same time, the National Bank has not yet determined the date of practical application of this norm.
The NBU notes that the changes bring the Ukrainian banking supervision system closer to European Union standards and comply with Ukraine’s obligations to the IMF and the EU.
