REUTERS
The National Bank of Ukraine (NBU) has ordered small-sized banks to accelerate the fulfillment of capital adequacy requirements to at least UAH 500 million by July 11, 2024, according to a posting on the regulator's website referring to resolution No. 58.
The resolution has introduced changes to the additional capitalization schedule.
According to the document, operating banks whose authorized capital is lower than the required minimum are obliged to increase it to UAH 120 million by June 17, 2016, to UAH 300 million by January 11, 2017, to UAH 400 million by January 11, 2018, to UAH 450 million by January 11, 2019, and to UAH 500 million by July 11, 2024.
The NBU emphasizes that the capital increase will help banks improve their financial stability and ability to withstand risks, while also enabling them to resume lending to the Ukrainian economy, being one of the main preconditions for accelerating the economic growth in the country.
As UNIAN reported earlier, the NBU announced it had completed the main stage of streamlining the largest banks.
During a meeting with the heads of 92 medium- and small-sized banks, accounting for about 10% of the banking system, in November last year, the NBU ordered the banks to conduct additional capitalization to UAH 120 million by mid-2016, disclose ultimate owners, reduce the proportion of insider loans and not to engage in any unlawful activity.
The World Bank expects the completion of the banking sector's consolidation in Ukraine and reduction in the number of banks to 100 in 2016, as part of measures carried out by the Ukrainian authorities to improve the sustainability and efficiency of the country's banking system.