Eight Ukrainian banks need to be recapitalized

Photo from UNIAN Stress tests have revealed that at least eight Ukrainian banks need to be recapitalized at a cost of UAH 6.1 billion, or US$217.8 million. "Under the base-case scenario following stress tests this year, the banks will need only UAH 6 billion in additional capitalization. Compared with UAH 220 billion (US$7.86 billion) in 2015, this is a very small amount and absolutely affordable," First Deputy Chairperson of the National Bank of Ukraine (NBU) Katerina Rozhkova said at a press conference on Thursday while presenting the results of the banking system&#39;s sustainability assessment. Read alsoUkraine to accelerate loan negotiations with IMF – media According to the regulator, these banks are obliged to implement capitalization programs by the end of this year. In the worst-case scenario, another five banks might also need more capital, and the total demand for capital for the thirteen banks will be UAH 42.1 billion, or US$1.5 billion. To meet capital requirements under the worst-case scenario, the banks must develop and implement restructuring plans by the end of 2019. According to the regulator, 56 banks were involved in the assessment of asset quality in 2018. The country&#39;s 24 largest banks, which collectively account for more than 90% of the assets of the entire banking sector, underwent additional stress testing. As UNIAN reported earlier, the regulator in May 2018 announced the evaluation of assets at the country&#39;s largest banks, including PrivatBank, Oschadbank, Ukreximbank, Raiffeisen Bank Aval, Alfa-Bank, Ukrgasbank, FUIB, UkrSibbank, Ukrainian subsidiary Sberbank of Russia, Ukrsotsbank, OTP Bank, Pivdennyi Bank, Credit Agricole Bank, Prominvestbank, TAScombank, ProCredit Bank, Kredobank, VTB Bank, Bank Credit Dnipro, Megabank, Bank Vostok, A-Bank, Idea Bank, Universal Bank, and Bank for Investments and Savings (BIS Bank).

Eight Ukrainian banks need to be recapitalized

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