On November 19, 2015, the Board of the National Bank of Ukraine issued Resolution No. 806 amending the Instruction on the Procedure for Regulation of Bank Activities in Ukraine.

Resolution No. 806 puts in place approaches requiring the uncovered credit risk (risk that has not been covered by the provisions in accordance with the IFRS) to be included in the calculation of capital ratios.  Pursuant to this Resolution, banks shall determine the credit risk arising from asset-side operations in accordance with the requirements set out in the Regulation on the Rules for Ukrainian banks making and using provisions against possible losses arising from asset-side banking operations. 

The uncovered credit risk shall be calculated as the amount by which the overall credit risk stemming from all the asset side operations exceeds the amount of the provisions set aside against these operations in accordance with the IFRS. 

Pursuant to this Resolution, banks shall include the uncovered credit risk in the calculation of capital ratios.  

Resolution No. 806 comes into effect from December 21, 2015.