After tests conducted by the National Bank of Ukraine (NBU) a total of 36 banks are to reduce credits issued to affiliated persons, the NBU has reported on its website.
“After tests it has been identified that the largest credit risks for debts of affiliated persons were higher than the requirement at 44 banks. As of early 2017, four banks were removed from the market and four of them brought their indicators in line with the requirement,” the central bank said.
According to the report, the NBU observed the requirement of a memorandum with the International Monetary Fund (IMF) and finished the stress tests for transactions of banks with affiliated persons in 2016. Last year 81 banks were tested and 18 were tested in 2015.
By the end of 2016 the regulator approved of the three-year schedules for cutting the debt of affiliated persons of eight banks. Fifteen more plans are being considered. In 2017 it is expected to receive 13 last schedules from the banks. (Interfax/Business World Magazine)