The National Bank of Ukraine has revised the calculation of some economic ratios. This was due to the adoption of IFRS 9 Financial Instruments, in particular the specifics of recognizing expected credit losses for financial instrument.

More specifically, the central bank allowed banks to factor in expected credit losses for the financial instruments that are reflected in the separate subaccounts of unamortized discount accounts when calculating capital, credit risk and liquidity ratios. These changes were approved by NBU Board Resolution No.33, dated 30 March 2018, On Amendments to the Instruction for Regulating the Operation of Ukrainian Banks, which comes into force 30 days after its official publication.

For reference

Economic ratios are calculated on the basis of the Instruction for Regulating the Operation of Ukrainian Banks approved by NBU Board Resolution No. 368 dated 28 August 2001.

Accounting for financial instrument is done on the basis of the Instruction for Accounting for Financial Instrument Transactions approved by NBU Board Resolution No. 14 dated 21 February 2018.