Ukrainian banks fulfil EU requirement, shifting to new capital structure

This was reported by the National Bank, Ukrinform saw.

“Ukraine’s banking system has successfully completed the second stage of transition to a new three-tier capital structure in accordance with EU requirements and as of January 1, 2025 maintains a sufficient capital reserve at all levels. The current level of capital generally ensures the sector’s resilience to possible shocks and allows it to further increase the loan portfolio,” the report says.

The NBU recalled that within the framework of the Law on banks and banking, enforced on August 5, 2024, the national banking system has switched to a three-tier capital structure with a phased introduction of minimum regulatory capital standards:

– from August 5 to December 31, 2024: in the amount of at least 8.5%;

– from January 1 to June 30, 2025: at least 9.25%;

– from July 1, 2025: at least 10%.

The regulator notes that thanks to the transition, the highest-quality component of capital has increased, which is Tier 1 core capital. Therefore, currently, bank capital is sufficient to cover all key risks. As of January 1, 2025, the regulatory capital adequacy ratio in the banking system stands at 17.35%, the Tier 1 capital adequacy ratio is at 16.92%, and the Tier 1 core capital adequacy ratio is 16.92%.

In general, as of January 1, 2025, all banks meet the minimum capital adequacy requirements at all levels.

As reported, the National Bank has approved the terms of reference for assessing the stability of banks and the banking system in 2025. Stress testing will be applied to 21 banking institutions, which account for over 90% of the banking system’s assets.

The results of the banks and banking system stability assessment, run in 2025, will be published by December 31, 2025.