The need in additional capitalization of 20 large banks of Ukraine is assessed at Hr 10 billion, according to preliminary results of the stress tests, First Deputy Governor of the National Bank of Ukraine (NBU) Oleksandr Pysaruk said at a roundtable in Kyiv on Oct. 21.
“The approximate sum of additional capitalization of these 20 banks is around Hr 10 billion,” he said.
He said that the final results of the stress tests of the second group of banks will be presented by late October.
Commenting on the results of the stress tests of the first group of banks (15 largest financial institutions), Pysaruk said that it will require around Hr 12.5 billion to additionally capitalize state banks out of the total sum of additional capitalization of Hr 56 billion and Hr 20.5 billion is required to additionally capitalize banks with foreign capital.
Pysaruk also said that Oschadbank will require the largest sum of additional capitalization in the group of the largest banks. Ukreximbank and Ukrgasbank also require additional capitalization.
He said that one bank with western capital and two banks with Russian capital will require additional capitalization in the group of the largest banks.
He said that six out of 15 largest banks in Ukraine do not require additional capitalization.
Pysaruk said that shareholders in banks understand that the banks require additional capitalization: NBU sets a task to additionally capitalize the largest banks by the end of this year and large banks – by the end of Feb. 2015.
Pysaruk said that in some cases the additional capitalization plans could be postponed for next year or scheduled for a three-year period.
Assessing the prospect of saving private banks using budget funds, Pysaruk said that the option is being discussed, but only as a drastic measure. The Finance Ministry does not want to participate in the nationalization of new banks.
“If the situation were unfavorable, maybe, the state will have to participate in the recapitalization of several banks. I hope that there will not be a need in this,” he said.
