To evaluate the true state of the banking sector, the NBU is launching a resilience assessment of the banks and the banking system. In 2023 this assessment will have a number of distinctive features due to war.
As of 1 April this year, there will be a three-stage resilience assessment:
- The first stage includes an asset quality review (AQR) and an assessment of the eligibility of collateral used in the banks’ credit operations, as well as an assessment of the value of property received by the banks’ as collateral and the calculation of capital adequacy ratios.
- The second stage involves extrapolating the results of the AQR and the collateral eligibility assessment to the banks’ credit operations that were not included in the sample at the first stage.
- The third stage assesses the NBU’s performance indicators under the baseline scenario and defines the necessary levels of capital adequacy ratios. The terms of reference and forecast indicators of the NBU’s operation have been published on the NBU’s official website.
In 2023, 20 banks will undergo the resilience assessment. Those include financial institutions that are leaders in terms of aggregate indicators of the amount of risk-weighted assets and retail deposits and loans. The total amount of these banks’ net assets accounts for over 90% of the banking system's assets.
The following banks will be assessed in 2023:
- CB PrivatBank JSC
- Oschadbank JSC
- Raiffeisen Bank Aval JSC
- SENSE BANK JSC
- UNIVERSAL BANK JSC
- FUIB JSC
- Ukreximbank JSC
- UKRGASBANK JSB
- OTP BANK JSC
- UKRSIBBANK JSС
- CREDIT AGRICOLE BANK JSC
- KREDOBANK JSC
- A-BANK JSC
- TASCOMBANK JSC
- PROCREDIT BANK JSC
- Pivdenny Bank JSB
- BANK CREDIT DNIPRO JSC
- BANK VOSTOK PJSC
- MTB BANK PJSC
- PRAVEX BANK JSC
The results of the resilience assessment of the banks and banking system of Ukraine in 2023 will be published by 31 March 2024.
The rules of this year's resilience assessment were approved by NBU Board Resolution No. 56, which is effective from 27 April 2023.
It is worth noting that the assessment of current banking system conditions and the procedure for obtaining information to identify the priorities of banking supervision are stipulated in the Memorandum of Economic and Financial Policies with the International Monetary Fund dated 24 March 2023.
In 2018, the NBU launched the resilience assessment of banks, which envisages, among other things, the stress testing of the banks that the NBU designates by separate decision. The stress testing aims to assess indicators from the banks’ financial statements (balance sheets, profit and loss statements) and the required level of capital for the three years from the reporting date.