Changes in Credit Risk Assessment for Ukrainian Banks

by Olha Povaliaieva
Monday, October 25, 2021
Changes in Credit Risk Assessment for Ukrainian Banks

The National Bank of Ukraine decided to the banks that are part of the banking group to exclude from the calculation of credit risk standards 50% of the total volume of transactions with a member of this group

To obtain such a right, a bank must comply with the requirements of the National Bank for the assessment and management of credit risks, management of the reporting system, and internal control.

The changes will take effect on December 1, 2021.

"Based on the provisions of European legislation and taking into account international experience, these innovations will contribute to credit support for the Ukrainian economy," the press service of the NBU reports.

On April 27 this year, the NBU established additional requirements for banking agreements to disclose full information about services.

On May 22, 2021, the requirement for banks to review the internal management processes of restructured assets and determine the amount of credit risk in accordance with the Law of Ukraine came into force. It talks about deposits, consumer loans and current account management.

And already at the end of September, the NBU advised banks not to restructure distressed assets, but to sell them at a reduced price.

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