In July, the banking sector’s total regulatory capital rose by UAH 5.1 billion, reflecting a UAH 6.5 billion increase in the Tier 1 Capital driven by:
- a 3.4 billion increase in contributions to nonregistered authorized capital
- a UAH 2.8 billion decline in the banking sector's total losses due to the commencement of winding-up proceedings in respect of BANK MIKHAYLIVSKIY PJSC and Fidobank PJSC.
The regulatory capital adequacy ratio (H2) rose from 13.03% as of 1 July 2016 to 13.84% as of 1 August 2016, primarily reflecting an increase in regulatory capital and a reduction in risk-weighted assets.
Additionally, the maximum credit exposure to bank’s related parties (Н9) rose by 3 percentage points in July to 28.36%. The increase can be attributed to the ongoing efforts of the NBU to identify banks' related party transactions.