Banks may face capital shortage in the event of a crisis
The National Bank conducted a rapid stress test on bank stability, according to which 7 private and 2 state banks showed capital adequacy risk. This was the first Deputy Chief of NBU Katerina Rozhkova at a briefing on 24 June.
If the crisis worsens, these banks may face a shortage of capital. However, according to Rozhkova, this does not threaten the stability of the entire system. He said, “The state guarantees the totality of banking banks, the remaining seven financial institutions hold 5% of the assets in the banking sector overall.”
Rozhkova stated that the NBU conducted a stress test according to a more rigorous scenario than that provided for macroprogranosis. “At the end of the year, when we expect the economy to start recovering, we will assess the quality of assets of all banks to understand where we are located.”
In addition, the Deputy Head of the National Bank urged all banks to actually evaluate their assets, recognize losses and make reserves on time, and temporarily hold shareholders to keep enough buffers to absorb potential losses. Did not even pay dividends.
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As the regulator previously stated, Ukrainian banks received 3.756 billion UAH of total profits in May, a 29.3% decrease from the same period in 2019 (UAH 5.313 billion).
Read: Ukrainian bank will pay round the clock
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According to the content Liga.net