On 4 February 2016, the Board of the National Bank of Ukraine issued  Resolution No. 58, bringing forward a timeframe set for banks to bring their authorized and regulatory capital into compliance with the minimum capital requirements as mandated by applicable banking laws.

In accordance with the Law of Ukraine “On Banks and Banking”, the minimum amount of the authorized capital at the time of state registration of a new bank should be no less than UAH 500 million.

The NBU has set a timeframe for operating banks, whose authorized capital does not meet the minimum capital requirements, to  bring their authorized capital into compliance with these requirements in a gradual manner. As mandated by applicable laws, the authorized capital of banks should be no less than UAH 120 million by 17 June 2016 and be gradually increased up to UAH 500 million by 11 July 2024.

NBU Board Resolution has brought forward a timeline set for operating banks to increase their authorized and regulatory capital to meet the minimum capital requirements set out by applicable laws. From now on, banks will be required to increase their capital to the level as mandated hereby:

• Up to UAH 120 million by 17 June 2016;
• Up to UAH 300 million by 11 January 2017;
• Up to UAH 400 million by 11 January 2018;
• Up to UAH 450 million by 11 January 2019;
• Up to UAH 500 million by 11 July 2024.

Thus, beginning 2017, a timeframe for banks to increase their minimum capital to be able to comply with the minimum capital requirements has been brought forward. This will allow enhancing banks’ financial resilience and their ability to withstand risks. Additionally, the increase in the capital will enable banks to resume lending to the economy, which is one of the drivers of the country’s economic growth.

Resolution No. 58 enters into effect on the day following its official publication date.