Financial sector news

The relevant information is available on the page "Banking Supervision. The stability assessment involved an asset quality review (AQR) for all banks. If a significant number of errors were found in the assessment of prudential reserves for loans, the AQR results were extrapolated, and stress testing was additionally conducted for the largest banks.

The AQR results required virtually no adjustments to the prudential reserve assessments, so there were no grounds for extrapolation. Significant deficiencies in the assessment were found in only one small bank, which was subsequently declared insolvent.

In 2025, the NBU returned to its pre-war practice of stress testing using two macroeconomic scenarios—baseline and adverse. Twenty-one financial institutions, accounting for over 90% of the banking system's assets, underwent stress testing. The regulator published its approaches to conducting stress testing in May this year.

According to the stress test results, the total capital of banks in 2025 grew in both scenarios. For comparison, in 2021, in the adverse scenario, the capital of the banking system as a whole decreased. At the same time, compared to the pre-war assessment, the number of banks for which increased capital adequacy requirements were established decreased.

Thus, under the baseline scenario, increased capital adequacy requirements were set for six banks with a combined share of 5% of the sector's assets: Kredit Dnipro, Tascombank, VST Bank, A-Bank, Bank Lviv, and Pravex Bank.

Under the adverse scenario, higher capital adequacy requirements were set for nine banks with an 18% share of the sector's assets. In addition to the six financial institutions mentioned above, the list includes the state-owned Ukreximbank and Sens Bank, as well as the private MTB Bank.

At the same time, 12 banks passed stress tests without setting the required capital adequacy levels. These are the state-owned PrivatBank, Oschadbank, and Ukrgasbank, banks with foreign capital Raiffeisen Bank, Ukrsibbank, Credit Agricole Bank, OTP Bank, Procredit Bank, Kredobank, as well as private PUMB, Universal Bank, and Bank Pivdenny.

All banks for which capital requirements have been determined are already implementing restructuring programs agreed with the National Bank. These programs mainly involve measures to reduce risks and, accordingly, lower capital adequacy requirements. The programs do not provide for recapitalization by owners, but instead contain plans to increase capital through profits.

It is expected that, based on the results of these programs, banks will achieve the required capital adequacy levels under the baseline scenario by the end of this year, and under the adverse scenario by October 2026.