Key Highlights:
Capital Adequacy Updates:
- New Requirements: Approved by Resolution No. 86, effective from July 19, 2024, with some provisions starting on August 5, 2024.
- Three-Level Structure: Introduction of core capital level 1, capital level 1, and regulatory capital for credit and investment subgroups (KIP).
- Capital Adequacy Norms:
- Level 1 core capital: 5.625%
- Level 1 capital: 7.5%
- Regulatory capital: 10%
- Implementation Schedule:
- 8.5% from August 5, 2024, to December 31, 2024
- 9.25% from January 1, 2025, to June 30, 2025
- 10% from July 1, 2025
Leverage Ratio Calculation:
- Regulation No. 89: Effective from August 5, 2024, requiring banks to develop internal regulations by March 31, 2025.
- Test Calculations: From April 1 to July 1, 2025, with results reported to the NBU.
- Banking Groups: Documents to be developed by June 30, 2025, with test calculations from July 1, 2025, to January 1, 2026.
- Implementation: New requirements will be set no earlier than mid-2025 for banks and April 2026 for banking groups.
Liquidity Adequacy Assessment (ILAAP):
- Regulation No. 88: Effective from August 5, 2024, ensuring banks maintain sufficient liquidity.
- ILAAP Process:
- Continuous assessment and maintenance of liquidity
- Compliance with supervisory requirements and risk management
- Reports to be submitted annually by May 31 (banks) and June 30 (banking groups)
- First Report: Due in 2025 as of January 1, 2025.
Conclusion
The NBU's regulatory updates bring Ukraine's banking sector closer to EU standards, enhancing capital adequacy, liquidity assessment, and leverage ratio calculations. These changes are designed to ensure the stability and resilience of Ukraine's financial system.
