NBU / facebook.com/NationalBankOfUkraine
The National Bank of Ukraine (NBU) plans to reschedule the stress-testing of large Ukrainian banks ranking 20th-40th due to the elaboration of new rules of credit risk assessment by banks.
The new rules will become effective as of April 1, 2016, the NBU wrote on its website.
"Due to the new rules, we're rescheduling the examination of the second 20 banks. We originally planned to do this by October 1. But we decided on the rescheduling as the banks will assess credit risks according to new instructions as of April 1, 2016," the NBU said citing Director of the NBU's Banking Supervision Department Kateryna Rozhkova as saying.
In her words, the assessment of the quality of banks' credit portfolio will be made in keeping with the new instructions and perhaps with some changes in methodology.
Read alsoNBU chief: No reason for significant fluctuations in currency marketThe NBU planned to complete the stress-testing of the first 10 banks by August 1 and another 10 banks by October 1, 2015. The examination of the entire banking system was expected to be completed by the middle of 2016.
As UNIAN reported, the NBU launched the repeat stress-testing of 20 operating banks from the group of the largest banking institutions in terms of assets this year: the first 10 banks were engaged on April 20 and another 10 banks joined the procedure on June 1.
During the stress-testing, the Big Four – Deloitte, PricewaterhouseCoopers, Ernst & Young and KPMG – examine the quality of bank assets, the sufficiency of reserves for bad loans, and their real value and operations with affiliated entities. Following the examination, the audit firms should conclude whether the banks need to form or replenish their capital.
Read alsoGontareva: Ukraine's GDP increased by 1% in 3QLate in July, the NBU announced that Ukrainian banks had successfully completed the additional capitalization following the stress-testing conducted under a cooperation program with the International Monetary Fund in 2014.