With a view to ensuring stable operation of Ukrainian banks and minimizing adverse effects of the temporary occupation of the territory of the Autonomous Republic of Crimea and the city of Sevastopol and economic difficulties caused by the anti-terrorist operation being held in the territory of Ukraine, as well as currency devaluation, the the Board of the National Bank of Ukraine issued Resolution No. 859 On Some Issues of Bank Activities  (hereinafter - Resolution No. 859).

Main consequences of such effects are deterioration of banks’ key performance indicators due to increasing share of adversely classified assets, additional loan loss provisioning, decrease of regulatory capital and violations of economic ratios.

To protect interests of depositors and creditors, Resolution No. 859 imposes restrictions on some operations that may carry additional risks.

The banks that are found to be in violation of ratios or requirements, but observe the NBU restrictions on some operations and have developed and submitted to the NBU  detailed plans of eliminating violations and deficiencies in due time (before February 1, 2015), shall not be subject to corrective measures.

The banks shall observe credit exposure limit for insiders, liquidity and investment ratios.

According to Resolution No. 859, the banks shall complete plans for eliminating violations arising from national currency devaluation before January 1, 2016, and plans for eliminating violations arising from loan loss provisioning - before January 1, 2019.

Resolution No. 859 comes into force on January 1, 2015.