The NBU will conduct stress tests of banks in 2025

In 2025, the assessment of the stability of banks and the banking system of Ukraine after a four-year break will be carried out according to a standard procedure. This was reported by the press service of the National Bank of Ukraine on Monday, November 25.

The test must cover more than 90% of the banks’ net assets and determine the need for capitalization or restructuring of individual institutions.

“After a four-year break, the assessment of the stability of the banks and the banking system will be carried out according to a standard procedure, with the participation of external auditors in the assessment of the quality of assets and the use of a unfavorable scenario as part of stress testing,” said the NBU.

The assessment includes three main stages:

• checking the quality of assets by independent auditors,

• extrapolation of the results obtained,

• stress testing of the largest banks according to base and adverse scenarios.

The third phase will cover banks with high levels of retail funds, risk-weighted assets, and retail loans, as well as those that require capitalization based on the results of the sustainability assessment in 2023. It will make it possible to cover more than 90 % of net assets of the banking system.

The sustainability assessment will be carried out starting January 1, 2025. According to the schedule, in December 2024, the NBU will approve the terms of reference and determine the list of banks for stress testing.

By the end of April 2025, the auditors will complete the asset quality assessment, and by August 10, the NBU will approve the assessment results. If necessary, banks will need to prepare capitalization or restructuring programs.

Let us remind you that the net profit after tax of solvent Ukrainian banks for January-October 2024 reached 125.6 billion Hryvnia. This is 2.3% higher than the same period last year.