Ukraine's National Bank to conduct stress testing of 16 banks in 2020 (List)

The National Bank of Ukraine (NBU) says in 2020 it will conduct stress testing of 16 banks accounting for about 44% of the Ukrainian banking sector's assets.

In particular, this refers to Oschadbank, Alfa-Bank, Ukreximbank, PJSC First Ukrainian International Bank/FUIB, Universal Bank, Pivdenny Bank, TAScombank, Megabank, A-Bank, Sberbank, Credit Dnepr Bank, Bank Vostok, MTB Bank, Bank for Investments and Savings, Pravex Bank, and Forward Bank, the regulator wrote on its website on February 10.

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"First, 25 [banks] were selected according to the same criteria as last year: the volume of risk-weighted assets, deposits and loans issued to individuals. Then, those banks that did not require additional capitalization as a result of stress testing twice in a row, in 2018 and 2019, were excluded; they will undergo asset quality review only," the NBU said.

In 2020, the regulator will conduct a sustainability evaluation of all banks operating in Ukraine, except for the Settlement Center, which handles transactions only.

As UNIAN reported earlier, following stress testing of major Ukrainian banks, the National Bank estimated the financial institutions' need for additional capitalization at UAH 35.2 billion (US$1.4 million) under the base-case scenario through UAH 73.8 billion (US$3 billion) under the worst-case scenario.

According to the NBU, five banks accounted for 85% of the identified needs for additional funding. They included two state-owned banks with a high share of non-performing assets on their balance sheets and, hence, low operational performance.