NBU begins stress tests of 29 banks

The National Bank of Ukraine (NBU) has begun the second phase of assessing resilience of banks and stress tests of 29 Ukrainian banks, the central bank’s press service has reported.

“The National Bank has started the second phase of assessing resilience of banks - working out the results of the analysis of asset quality review (AQR), confirmed by external audit. Also, stress testing of 29 banks has been launched. According to preliminary estimates, the number of banks that will need capital injections according to the baseline and adverse scenarios of stress-test will decrease, if compared with the previous year,” reads the report.

In 2019, 29 banks that account for 93% of the banking system will undergo stress testing in addition to the AQR. These 29 banks were rated as the largest ones as of 1 November 2018 by three indicators: risk-weighted assets (40%), retail deposits (50%), and retail loans (10%).

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