The National Bank of Ukraine (NBU) has published results of bank resilience assessment for individual banks. See section Banking Supervision for data.
The resilience assessment comprises asset quality review (AQR), and stress tests for the largest banks. This year, 29 banks were stress tested; combined, they account for over 90% of the banking sector assets.
Earlier this year, the NBU published macroeconomic assumptions for both baseline and adverse scenarios.
Based on the resilience assessment, the NBU set required (target) core and regulatory capital adequacy ratios if the capital adequacy ratios for a bank were falling below the hurdle rates under the stress test.
Target capital adequacy ratios were defined in view of the balance sheet as of early 2019; however, for many banks they were revised downwards taking into account the measures that banks had implemented. Looking forward, the NBU will revise (target) capital requirements for banks again, upon results of the first half of 2020, if measures that banks are taking will bring down their risks.
Based on AQR findings, just one bank needed capital; however, it already covered this need back in autumn.
However, a (target) required capital adequacy ratio above the minimum requirement was set for 18 banks upon stress test results. Out of those 18 banks, 7 banks needed capital only under the adverse scenario.
In 2019, nine banks passed the stress test successfully for the second year running. Most of them were foreign-owned, as well as state-owned PrivatBank and Ukrgazbank. This year, FUIB and Alfa-Bank also did not need capital according to the stress test. At the same time, the capital need for Alfa-Bank was determined with regard to impact of merger with Ukrsotsbank.
All banks, for which the stress test discovered a need of capital, have already developed recapitalization or restructuring programs, and have them validated by the NBU. The banks must implement the programs by the end of September 2020.