The NBU recognized the technical bankruptcy of the Ukrainian banking system
Kyiv, March 18 (PolitNavigator, Vasily Ablyazimov) – The regulatory capital sufficiency (adequacy) standard (N2) for the Ukrainian banking system in February fell from 13,8% to 7,37%, while the National Bank set its minimum value at 10 %, reports Interfax-Ukraine. In fact, this is a recognition of the technical default of the Ukrainian banking system.
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The data is published on the NBU website. According to the national regulator, this drop in the adequacy standard is due to a decrease in the regulatory capital of banks from UAH 166,88 billion at the beginning of February to UAH 117,65 billion at the beginning of March. At the beginning of 2015, the H2 standard was 15,6%. One of the reasons for this decrease was the bankruptcy of large banks and the outflow of deposits from individuals, as well as the devaluation of the hryvnia.
In addition, at the end of February, the standard for the maximum amount of credit risk per counterparty approached the maximum level established by the National Bank. Now it is 23,73%, while the ceiling is 25%. Thus, several large banks in Ukraine have completely abandoned consumer loans and limited other types of lending.
According to the law on banks and banking activities, the bank and each owner of a significant participation are required to maintain the bank’s regulatory capital adequacy ratio at the level established by the NBU.
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