Six small Ukrainian banks operate in limited mode – NBU Deputy Governor

UNIAN 1

Deputy Governor of the National Bank of Ukraine (NBU) Kateryna Rozhkova says that six small-sized Ukrainian banks operate in a limited mode due to the regulator's verification of the sources of capital used for additional capitalization to up to UAH 200 million, or US$7.5 million.

Photo from UNIAN
Photo from UNIAN

"We are working with them [banks]. They are operating in a regime of restrictions," Rozhkova said on the air of Radio Vesti.

According to the official, all those banks had raised their capital as otherwise the regulator would already have removed them from the market. "But we have a lot of questions as for the origin of this money," Rozhkova added.

NBU to transfer almost US$1.8 bln in profit to budget in 2018She explained that the audit is ongoing, and she did not rule out that some financial institutions might be withdrawn from the market. "But these are very small banks," Rozhkova reassured.

As UNIAN reported earlier, the National Bank in 2016 issued resolution No. 58 to oblige Ukrainian banks to raise capital to UAH 200 million by July 11, 2017; to UAH 300 million by July 11, 2018; to UAH 400 million by July 11, 2019; to UAH 450 million by July 11, 2020, and to UAH 500 million by July 11, 2024.

The Verkhovna Rada of Ukraine on March 23, 2017, passed a draft law on simplification of procedures for bank capitalization and restructuring and President Petro Poroshenko enacted it on April 26. The law allows banks to stop using a banking license without liquidating a legal entity and continue their operation as a non-bank financial institution. However, they must have no debts before their depositors.

Tags: NBU, banks, capitalization, Rozhkova