After a break due to the pandemic, the National Bank of Ukraine (NBU) will resume stress testing in 2021 in 30 banks, which account for 90% of the banking system's assets, the regulator's press service said on Tuesday.
The banks where stress tests will be conducted are selected according to three criteria, in particular the size of risk-weighted assets, the volume of deposits attracted from households and the volume of net loans issued to households (with weights of 40%, 50% and 10% respectively) , the NBU said.
The list includes PrivatBank, Oschadbank, Ukreximbank, Ukrgasbank, Alfa Bank, Raiffeisen Bank Aval, Sberbank, Ukrsibbank, OTP Bank, Credit Agricole Bank, ProCredit Bank, Kredobank, Idea Bank, Pravex Bank, and FUIB.
It also includes Universal Bank, Credit Dnipro Bank, Megabank, A-Bank, MTB Bank, Industrialbank, BIS Bank, Accordbank, Pivdenny, Forward, Lviv, Alliance, Globus and Vostok.
"Details of macroeconomic scenarios and approaches to stress testing in 2021 will be published later on the website of the National Bank," the NBU said.
Based on the results of the resilience assessment, the required level of regulatory capital adequacy ratio (H2) and capital adequacy ratio (H3) will be determined for banks, the central bank said.
In addition, the regulator will conduct the annual resilience assessment as of January 1, 2021, which provides an asset quality review (AQR) for 72 of the 73 operating banks (except for the Settlement Center, which performs only settlement operations.
The focus of the current resilience assessment will be the state of banks' assets after the acute phase of the coronavirus crisis, and special attention will be paid to restructured loans and the quality of real estate appraisal.