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NBU Improves Procedure for Credit Risk Calculation by Banks

23 January 2017



The National Bank of Ukraine continues to enhance regulation and supervision over banking sector according to the best international practices.  Thereby, the NBU amended the Regulation for Measuring Credit Risk by Banks of Ukraine, approved by the NBU Board Resolution No. 351 dated 30 June 2016 (hereinafter - Regulation No. 351). The amendments are due to:

·         updating of the parameters of the logistic model and the range of PD* values, used by banks to assess the financial status of borrowers - legal entities. Updating was performed on the basis of updated data of financial statements of borrowers-legal entities and taking into account current economic trends;

·         amendments to the laws and NBU regulations, in particular the Chart of Accounts in connection with the IFRS 9 introduction, e-workflow, etc.;

·         analysis of results of practical application of the Regulation No. 351 by banks. Amendments increased the requirement for the of collateral acceptability, which is taken into account when calculating the amount of credit risk;

·         taking into account the proposals of the banking community regarding the application of the CCF ** ratio for trade finance operations that is consistent with the Basel Committee on Banking Supervision approaches.  


Said amendments to the Regulation for Measuring Credit Risk by Banks of Ukraine were approved by NBU Board Resolution No. 3 dated 23 January 2018 that enters into effect on the day following the date of official release.


The NBU Board by its Resolution No. 351 of 30 June 2016 approved the Regulation for Measuring Credit Risk Generated by Banks’ Asset Operations. The objective of the new Regulation is to ensure proper and timely assessment of credit risk by banks, which will promote correct calculation of capital and, improve the financial soundness of the banking sector.



PD* - probability of default

ССF** - credit conversion factor


Last modification   23.01.2018