Data on the key performance indicators of the Ukrainian banks as of September 1, 2015 suggest that the banking sector clean-up leads to an increase in the capital adequacy ratio within the entire system. Notwithstanding the fact that the build-up of loan loss provisions by banks led to an increase of UAH 14.7 billion in losses reported by the Ukrainian banking sector (86.4% of the total allocations to loan loss provisions for August 2015  within the group of solvent banks), banks keep increasing the Regulatory Capital Adequacy Ratio (R2) in a gradual manner.  As of September 1, 2015, the Regulatory Capital Adequacy Ratio (for the operating banks) stood at 12.91%, having risen by 0.51 p.p. on the month.

Overall, Ukraine’s banks reported losses amounting to  UAH 106.4 billion, including the insolvent banks that  have been put under receivership by the Deposit Guarantee Fund. The growth in the banks' losses was primarily due to extensive loan loss provisioning.  This was prompted by the need to cover credit risks arising from lending operations, including due to a worsening debt service ability of the borrowers from the ATO area.

In August, the banks’ authorized capital increased by UAH 3.6 billion mainly on account of  additional capitalization  of Group I banks. At this, the operating banks’ regulatory capital has shrunk by UAH 436 million, primarily due to losses incurred as a result of loan loss provisioning.