The National Bank of Ukraine (NBU) has approved the methodology for bank stress testing in 2021, the central bank’s press service reports.
The NBU reminded that stress testing was one of the stages of the banks’ resilience assessment.
“This year 30 institutions are to be stress tested. They account for 93% of the banking system assets. Stress testing will enable in-depth analysis of the sector after the 2020 crisis year and help gauge banks’ resilience to possible adverse events in the future,” reads the report.
This year stress testing will begin in May.
Following the stress testing, the required capital adequacy will be set for banks to prevent violations of statutory requirements and insolvency, even under crisis conditions.
Approaches to stress testing of banks are defined by the decision of the Board of the National Bank of Ukraine dated April 30 No. 177-rsh, “On Amendments to Certain Administrative Acts of the National Bank of Ukraine”, which entered into force on the day of its adoption. (Ukrinform/Business World Magazine)