State-owned Ukreximbank, private banks MTB and Pravex will need additional capital until 2026.
The National Bank of Ukraine published a report assessing the sustainability of 20 banks in 2023. Three banks will require additional capital until 2026 – state-owned Ukreximbank, private banks MTB and Pravex.
It was noted that most banks in Ukraine have sufficient capital, and the banking system as a whole has a high margin of safety.
At the same time, five banks identified the need for additional capital. These are Ukreximbank, MTB, Pravex-Bank, Ukrgasbank and Sense Bank. The last two have already increased the capital to the required level.
According to the NBU, two out of five banks with adequate ratios exceeding the required level in December must at least maintain capital at the target level set for them. The remaining three must ensure the level of capital adequacy in two stages:
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at the end of September 2024 – determined taking into account the 0% limit;
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at the end of March 2026 – determined taking into account the limit values at the regulatory level.
The report states that the main reason for the need for capital for the five banks is their significantly below average operating efficiency for the sector. Almost all banks have low interest margins and high operating cost to income ratios.
Banks where the required levels of capital adequacy standards have been established must submit restructuring or capitalization programs to the NBU in the near future. The main steps in these programs are restructuring the balance sheets and improving operational efficiency.
We remind you that in 10 months of 2023, Ukrainian banks earned 122.7 billion hryvnias. This is more than double the corresponding period in 2021, when revenue reached UAH 58.35 billion.
On December 6, President Vladimir Zelensky signed a law on additional taxation of banks. Based on the results of 2023, the tax rate will be 50%.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.