“For the first time in four years: the National Bank will conduct stress tests for banks. The National Bank of Ukraine is renewing the assessment of the stability of the banking system at the end of 2024. The review will cover more than 90% of the banks’ net assets and determine the need for their capitalization or restructuring.”, — write on: unn.ua
“After a four-year break, the assessment of the stability of banks and the banking system will be carried out according to the standard procedure, with the involvement of external auditors in the assessment of the quality of assets and the application of an adverse scenario within the framework of stress testing,” the NBU noted.
The evaluation will include three key stages:
• checking the quality of assets by independent auditors,
• extrapolation of the obtained results,
• stress testing of the largest banks under basic and adverse scenarios.
The third stage will cover banks with the highest indicators of the volume of funds of individuals, weighted by the risk of assets and the volume of loans to individuals, as well as those that needed capitalization based on the results of the sustainability assessment in 2023. This will cover more than 90% of the net assets of the banking system.
The sustainability assessment will be conducted on January 1, 2025.
According to the schedule, in December 2024, the NBU will approve the terms of reference and determine the list of banks for stress testing.
By the end of April 2025, the auditors will complete the asset quality check, and the NBU will approve the assessment results by August 10. If necessary, banks will be sent requirements for the preparation of capitalization or restructuring programs.
We will remind
In 2024, Ukrainian banks earned 40.5 billion hryvnias, which is 19% more compared to the same period last year, despite the increase in taxation. During the first quarter, only 8 out of 63 banks showed losses.