On October 20, 2014, First Deputy Governor of the National Bank of Ukraine Oleksandr Pysaruk met with journalists and representatives of the banking community at the roundtable on "How to return stability to the banking system", which took place at the press center of the information Agency Ukrainian News. The roundtable was attended by Andriy Olenchyk, Deputy Managing Director of the Deposit Guarantee Fund (hereinafter – the Fund), Olena Popova, Chairwoman of the Board of Directors at JSC Delta Bank, Yurii Prozorov,  President of the Ukrainian Society of Financial Analysts , and Roman Shpek, a member of the NBU Council.  The roundtable discussion was focused on pressing issues related to the restoration of confidence in the banking sector, the results of the stress tests of the 35 largest banks by assets, and Fund's handling of problematic banks.

First Deputy Governor of the National Bank of Ukraine Oleksandr Pysaruk has confirmed information that 9 out of the 15 banks that have undergone stress tests require additional capital worth UAH 56 billion. With regard to the next 20 banks – these data are currently being processed. According to preliminary results of the stress tests, recapitalization needs of these banks are estimated at approximately UAH 10 billion.

”We maintain a constructive dialogue with the owners and investors of these banks, who have an understanding of the need to increase the authorized capital of their financial institutions and express their readiness to do so," Oleksandr Pysaruk reassured the attendees.

Andriy Olenchyk has said that the Fund operates in a sustainable manner. Over 16 years of its operation, the Fund has never failed to fulfill its mandate. We will manage to cope with the situation facing us this year – we have sufficient funds for this," he said.

Representatives of the banking community have once again emphasized the need to resolve as soon as possible the issue related to the protection of creditors' interests. A delay in addressing this issue leads to a reduction in foreign investments in Ukraine's economy and the build-up of non-performing loans due to the deterioration of borrowers' repayment discipline (borrowers fail to pay the principal and interest on loans). Oleksandr Pysaruk has informed the attendees that the National Bank of Ukraine is working on a draft law that would enhance the protection of creditors' interests and plans to submit it to the Verkhovna Rada of Ukraine by the end of the year. In November, the National Bank of Ukraine plans to submit a draft law designed to simplify the procedure of restructuring and consolidation of the banking system to the Parliament.

Representatives of the banking community have concurred on the need to "purge" the banking system – banks should not perform non-relevant operations or service business of their shareholders. In doing so, they expose the funds of their clients and other market players to risks and threaten the stability of the banking system as a whole. 

In light of the above, according to Oleksandr Pysaruk, the NBU's strategy envisages the following top-priority steps:

• the removal from the market of  problematic banks and banks violating the law on financial monitoring. This would rehabilitate the banking system and set it on a sustainable path;
• the provision of liquidity support by the National Bank to solvent banks, specifically, the provision of refinancing loans;
• measures taken by the National Bank to improve the quality of bank management, in particular, by increasing the requirements on the management, strengthening the accountability of banks' senior managers and shareholders, improving risk management and financial monitoring framework;
• commitment to improve the environment in which banks operate, in particular, with regard to enhancing the protection of creditors' rights.

Oleksandr Pysaruk is convinced that in one or two years from now Ukraine will have a revamped banking system thanks to the implementation of measures mentioned above and concerted efforts by the National Bank, the Fund, banking community and the government authorities.