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16 banks to undergo stress testing in 2020, - Ukraine’s National Bank

Source : 112 Ukraine

Asset quality assessments will be conducted at 74 of the 75 institutions that have banking licenses
11:49, 11 February 2020

National Bank of Ukraine

The National Bank of Ukraine (NBU) has identified a list of banks that will undergo stress testing in 2020. The press service of the NBU reported that.

It should be noted that the stability assessment is carried out as of January 1, 2020. It provides an asset quality review (AQR) for all banks and additional stress testing for a separate list of major banks.

"74 of the 75 institutions that have banking licenses will be assessed for asset quality in 2020. Stress testing, in addition to asset quality assessment, will be carried out at 16 banks in 2020, accounting for 44% of the banking system's assets," the message reads.

Related: Ukraine's National Bank lowers discount rate from 13.5% to 11%

As we reported earlier, Ukraine's National Bank changed its estimation of the medium-term nominal neutral interest rate in Ukraine from 8% to 7% per annum, Interfax informed about it.

"This was the result of a revaluation of the equilibrium real exchange rate of hryvnia. Today, the structural characteristics of the Ukrainian economy are in line with a stronger equilibrium exchange rate than it was previously expected," stated in the inflation report, which was published on Friday.

According to new estimates, the NBU has the potential to reduce the discount rate more significantly than previously expected - up to 7%.

Related: Ukraine's National Bank expects signing of new program with IMF soon

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