The National Bank of Ukraine (NBU) has introduced changes to the schedule for banks to raise their minimum charter capital and regulatory capital, having postponed an increase in charter capital to UAH 300 million until July 11, 2020, from the earlier deadline set on July 11, 2018, to the NBU said on its website.

"The relevant decision is based on a detailed analysis of risks in the banking sector: now the situation in the financial system has stabilized, and the dynamics of the Ukrainian banks' performance are positive. Therefore, objective factors have let [the NBU] ease the schedule for bringing the minimum amount of charter and regulatory capital to the required level," it said.

The National Bank also clarifies that small banks' capital adequacy ratio is now significantly (more than two times) higher than the required value. In addition, after the examination of the quality of active operations it was established that only four banks from the group of small banking institutions needed additional capitalization due to unsatisfactory quality of the loan portfolio.

At the same time, the NBU indicates that the key task for the shareholders and top management of small banks should now be the development and revision of business models.

As of December 11, 2017, there were 42 banks whose charter capital was below UAH 300 million.

The corresponding decision is stipulated in NBU Board resolution No. 136 dated December 21, 2017, on amendments to certain legal acts of the NBU. It will become effective from December 23, 2017.