The National Bank of Ukraine published its 2025 resilience assessment, concluding that the banking sector is sufficiently resilient and capitalized, with banks representing the vast majority of sector assets able to continue lending and remain solvent even in a deep and protracted crisis. The assessment nonetheless identified a number of banks that need to strengthen resilience, including through higher required capital adequacy ratios set as a result of stress testing. The exercise comprised an asset quality review and collateral eligibility assessment by external auditors for all banks, extrapolation of results where needed, and stress testing of 21 large banks covering 90% of sector assets under baseline and adverse macroeconomic scenarios. The asset quality review led to only minor credit-risk adjustments and generally did not affect capital adequacy; among banks that underwent only the asset quality review, one received a required capital ratio above the minimum. For the 21 stress-tested banks, nine (18% of sector net assets) were assigned higher required capital adequacy ratios, including three banks (two state-owned and one private) with a combined 13% of sector assets that need capital only under the adverse scenario. Another three banks already hold sufficient capital against higher baseline requirements and must maintain it, while three banks that must raise capital under the baseline scenario account for 3% of sector assets. Under the adverse scenario, the estimated capital need was about 5% of system regulatory capital as of early 2025. Banks must meet and maintain the set capital adequacy ratios or reduce risk through balance-sheet restructuring. The deadline to implement measures to meet adverse-scenario capital requirements was extended to end-September 2026 under NBU Board Resolution No. 101 of 27 August 2025, and bank-by-bank findings are expected in late December 2025.
National Bank of Ukraine 2025-09-01
National Bank of Ukraine finds banks largely resilient in 2025 assessment and extends adverse-scenario capital deadline to September 2026
The National Bank of Ukraine's 2025 resilience assessment confirms the banking sector's overall resilience and capitalization, with most banks able to withstand a severe crisis. However, some banks need to enhance resilience through higher capital adequacy ratios following stress testing. The assessment involved an asset quality review and stress testing of major banks, revealing minor credit-risk adjustments and specific capital requirements under baseline and adverse scenarios.