Ukraine’s banking system has successfully completed the second stage of transition to a new three-tier capital structure in line with EU requirements. As of January 1, banks’ capital was sufficient to cover all key risks.
This was reported by the National Bank.
“Ukraine’s banking system has successfully completed the second stage of transition to a new three-tier capital structure in accordance with EU requirements and as of January 1 maintains a sufficient capital reserve at all levels. The current level of capital generally ensures the sector’s resilience to possible shocks and allows it to further increase the loan portfolio,” the report says.
The NBU recalled that within the framework of the Law on banks and banking, enforced on August 5, 2024, the national banking system had switched to a three-tier capital structure with a phased introduction of minimum regulatory capital standards:
– From August 5 to December 31, 2024 – in the amount of at least 8.5%;
– From January 1 to June 30, 2025 – at least 9.25%;
– From July 1, 2025 – at least 10%.
The regulator notes that thanks to the transition, the highest-quality component of capital has increased, which is Tier 1 core capital. Therefore, currently, bank capital is sufficient to cover all key risks. As of January 1 the regulatory capital adequacy ratio in the banking system stood at 17.35%, the Tier 1 capital adequacy ratio was at 16.92% and the Tier 1 core capital adequacy ratio was 16.92%.
In general, as of January 1 all banks met the minimum capital adequacy requirements at all levels. (Ukrinform)