June 1, 2023

South Sudan News Agency

Complete English News World

A big test of the Ukrainian banking system is coming

The Ukrainian Central Bank will begin stress tests for commercial banks in April. According to Andriy Pishnyi, head of the National Bank of Ukraine, many questions need to be answered, such as the work of systemically important banks, the role of state-owned banks, issues of unpaid debts as a result of the war, and support. Financial balance of military industry, lending to SMEs or services.

According to the Central Bank, Ukraine’s banking system is operationally stable, liquid and profitable, with banks’ profits reaching 24.7 billion hryvnias ($675.42 million) in 2022, compared to 77.4 billion hryvnias in 2021.

Through stress tests, the central bank wants to ensure that Ukrainian banks are better prepared for future shocks and are adequately capitalized. They also wonder how long it will take for the effects of war to heal.

Central Bank said He expects most banks to be able to cover their capital needs, but some banks may need support from shareholders.. In this regard, non-performing loans in loan portfolios increased to around 38% in Q4 2022.

There are 67 commercial banks in Ukraine, 50% of the banking system is state-owned.

Cover image: Getty Images

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