The Board of the National Bank of Ukraine has adopted Resolution No 250 of 20 June 2012 (registered with the Ministry of Justice of Ukraine on 22 June 2012 under 1030/21342), which introduces amendments to Instruction on the Procedure for Regulating of Banks’ Activities in Ukraine.

The introduction of these amendments stems from the necessity to bring the above-mentioned regulation in line with provisions of the Law of Ukraine “On Household Deposits Guarantee System” No 4452-VI of 23 February 2012 (hereinafter referred to as the Law) and improve approaches used to calculate certain economic ratios.

Pursuant to the requirements of the Law, the amendments are intended to allow the banks which acquire assets and assume liabilities of insolvent banks to include funds raised from the Household Deposit Guarantee Fund in the form of subordinated debt in their capital.

The banks will be allowed to include additional contributions to the authorized capital made by the shareholders in the regulatory capital.

The above amendments will expand the possibilities for banks to increase their capital through issuing subordinated debt in banking metals.

Existing approaches to calculating economic ratios have been reviewed by taking into account liquidity of government securities.

The banking community has made efforts to introduce amendments to the regulation.

The implementation of these amended regulations will improve the quality of regulatory capital, enhance the soundness of the banking system as well as its ability to withstand the negative developments in the market and safeguard the interests of depositors and creditors.