NBU announces results of bank stability assessment

The National Bank of Ukraine (NBU) has announced the results of the bank stability assessment.

This is announced in the NBU's statement, Ukrainian News Agency reports.

It is noted that banks, which form the vast majority of the sector's assets, have sufficient capital reserves to continue lending and remain solvent even in conditions of a deep and prolonged crisis.

However, a number of banks must take measures to strengthen their resilience to possible crisis events in the future.

This year's bank stability assessment traditionally consisted of:

- assessment of asset quality and collateral eligibility, which was conducted by external auditors for all banks;

- extrapolation of the results of the asset quality assessment (if necessary);

- stress testing (under baseline and adverse macroeconomic scenarios) of the 21 largest banks, which accumulate over 90% of the sector's assets.

The results of the asset quality assessment confirmed the correctness of the banks' assessment of the amount of credit risk (prudential reserves).

Overall, the auditors made minor adjustments to credit risk. They did not affect the capital adequacy ratios of most banks that underwent only an asset quality assessment.

Only one of these banks was set a required capital level higher than the minimum level based on the results of the stress assessment.

Of the 21 banks that underwent stress testing, 9 banks were set an increased required capital adequacy ratio.

These banks collectively account for 18% of the sector's net assets. At the same time, three of them - two state-owned and one private - with a combined share of 13% of banking sector assets require capital only under an adverse scenario.

The three banks with increased capital adequacy requirements under the baseline scenario already have sufficient capital, which they will need to maintain. Three more banks that need to increase capital adequacy to the required level under the baseline scenario have only 3% of the sector's assets, the rest already have sufficient capitalization indicators.

In general, the estimated capital requirement based on the results of the stress test, taking into account the adverse scenario of the current year, is about 5% of the regulatory capital of the banking system as of the beginning of this year.

This is almost three times less than according to the results of the resilience assessment in 2021. Compared to the results of the resilience assessment to a full-scale invasion, the number of banks for which increased capital adequacy requirements have been established has decreased. According to the results of the stress test in 2025, the total capital of banks increased in all scenarios, while in 2021, capital for the system as a whole decreased in the adverse scenario.

To ensure resilience, banks must continue to achieve and comply with the capital adequacy requirements set by the National Bank or implement measures to reduce risks by restructuring their balance sheets. These measures may include improving the quality of the loan portfolio, optimizing the structure of assets and liabilities, and adjusting the business model. Traditionally, banks more often choose the path of restructuring their own balance sheets, which requires more time.

As Ukrainian News Agency earlier reported, the NBU previously reported that 21 banks will undergo stress testing in 2025.

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