Top-20 Ukrainian banks complied with the commitments on follow on capitalization. On November 28, the Deputy Head of the National Bank of Ukraine (NBU) Kateryna Rozhkova reported on this issue at the meeting with directors of the biggest banks. One other bank of this group undergoes inspection by this moment.
The inspection provides for a “soft” schedule of banks’ capitalization, developed by the NBU and agreed within the International Monetary Fund (IMF). It was necessary due to losses of the banking sector during the year 2015.
At the same time, Ms. Rozhkova noted that 12 banks of the second group of 20 needed growth of capital stock up. According to the agreement with the International Monetary Fund, the deadline of follow on capitalization for this group of banks was shifted one month later, until the end of 2016.
The third group of 21 banks demonstrates the inspection results as follows: two banks do not need any capitalization growth, eight – do need growth of capitalization just to achieve the minimum statutory capital, 11 banks have to gain their capitals by particular amounts.
During the next year, small banks will be inspected.
During the year 2016, 20 biggest banks must have provided for sufficiency basic capitalization rates (capacity of a bank to timely and fully meet their obligations) of 4% and 5% adequacy of regulatory capital. By the end of 2018, this indicator must reach 10%.
The banks failing to fulfill completely and according to the deadlines their follow on capitalization commitments will be labeled insolvent.