12:37 01.07.2016

Capitalization of banking system increases by 18% since early 2015

2 min read
Capitalization of banking system increases by 18% since early 2015

Despite removal of banks from the market, capitalization of the banking system since early 2015 has grown by 18% or UAH 39 billion, to UAH 218 billion as of May 1, 2016, according to the presentation spread at a press conference of the National Bank of Ukraine (NBU).

According to the NBU, the number of banks over the period decreased from 147 to 109.

After stress tests the charter capital of top 20 banks was increased by UAH 98.6 billion.

The NBU anticipates the further growth of banks' capital under the schedule to bring capital to the minimum level.

As of June 1, 2016, concentration in the banking sector was 829 (as of early 2016 – 793 and as of early 2015 – 564).

The central bank said that the share of troubled loans in the banks' portfolios as of June 1, 2016 grew from 27% (declared by banks) to 36% after analyzing the quality of assets and to the anticipated 53% after stress tests.

The NBU said that the banking sector is fully transparent now: disclosure of banks owners is 98.7%, with the remaining1.3% information about minority shareholders.

Since early 2014, the number of banks decreased by 78, to 102 (as of June 30, 2016).

Assets of banks removed from the market reached UAH 416 billion or 29.6% of total assets as of January 1, 2014. Total sum of guaranteed deposits is UAH 81.8 billion, including UAH 73.5 billion paid.

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