The National Bank of Ukraine has updated the requirements for the capital structure of banks in accordance with the norms of the law adopted in June 2021 on improving the organization of corporate governance in banks and other issues of functioning of the banking system (No. 1587-IX), which determine the introduction of a new (three-tier) capital structure for banks from August 5, 2024.
“The new requirements are expected to be introduced in stages: by April 1, banks must develop internal regulations for determining the amount of regulatory capital; from April 1 to July 1 – to conduct test calculations and report their results to the NBU; from August 5, 2024 – to begin the implementation of the calculation of regulatory capital according to the new requirements,” the regulator said in a release on its website.
It is indicated that the regulation on the procedure for determining the amount of regulatory capital by banks of Ukraine determines: the procedure for calculating the basic capital of I level, additional capital of I level, capital of II level, their components and deductions from them; requirements for the components of capital, at the expense of which the capital is formed; procedure and conditions for obtaining by the bank of the permission / approval of the National Bank regarding the inclusion of individual components in the capital, etc.
The National Bank emphasized that the introduction of the new capital structure is another significant step towards the standards of the European Union.
“The introduction of the new capital structure for banks is a significant step to improve the stability of the banking system and its competitiveness. Taking into account the results of the stability assessment, the current state of banks and the phased introduction of new requirements, we are confident that banks will cope with this task,” the release quotes First Deputy Head of the NBU Ekaterina Rozhkova as saying.
It is specified that the regulation on the procedure for determining the size of regulatory capital by banks of Ukraine was approved by the resolution of the Board of the National Bank of December 28, 2023 № 196, which comes into force on December 30, 2023.
