The Ukrainian banking system has passed the initial “crash test” of the war very well but the worse is yet to come
According to Deputy Governor of the National Bank of Ukraine (NBU) Serhii Nikolaichuk, the Ukrainian banking system has passed the initial ‘crash test’ of the war very well and is working smoothly. “But it is clear that the medium-term challenge for the banking system is a significant deterioration in the quality of its assets,” the NBU deputy governor explained.
He recalled that the NBU initiated and adopted legislative changes that allow banks to violate the capital, solvency, and liquidity standards, which “exist for banks to have a certain margin of safety in case of negative events.”
“But after the end of the war, we will need to develop a recapitalization program together with banks, restoring indicators of stability to standard normative values,” Nikolaichuk emphasized.