The Press Service of the National Bank of Ukraine hereby provides the following information in response to inquiries from media outlets regarding Privatbank's financial position.
Privatbank is one of the three systemically important banks for the domestic financial system and one of the largest savings banks in Ukraine. This bank provides services to a large number of pensioners, large, medium-sized, and small businesses, implements payroll card projects, successfully develops payment systems, while maintaining its position as a leading innovative bank.
In 2014, Privatbank passed stress tests conducted by the NBU and met all the necessary conditions to secure the ability to further perform banking operations. As a follow-up to the findings of diagnostic studies, UAH 8.2 billion was injected into the bank's capital.
Last year the NBU conducted a new round of diagnostic studies for the top 20 banks. The diagnostic studies are designed to put the banking system back on a healthy path and strengthen the country’s financial system. Privatbank agreed a three-year recapitalization plan with the NBU and is currently engaged in vigorous efforts to implement it. It is a comprehensive program that includes the restructuring of loans granted by the NBU, measures to improve the quality of the loan portfolio, including through the acceptance of additional collateral against loans, and to increase the bank’s capital through both additional contributions by shareholders and the conversion of subordinated debt into Tier 1 capital, as well as ensuring the bank's full compliance with prudential ratios set by the regulator.
The NBU conducts a continuous monitoring of the Bank's activities as a whole and exercises control over the implementation of the recapitalization program by the Bank. The Bank's liquidity position is currently satisfactory. Privatbank maintains the largest cash balances in cash desks and ATMs across the banking system, amounting to UAH 9 billion. UAH 2.3 billion is held in the Bank’s correspondent account