Ukraine's National Bank eases risk assessment requirements for mortgage lending, SME support

20:59, 08.04.2025 1 min read

The National Bank of Ukraine (NBU) is updating its requirements for banks' calculation of credit risk-weighted exposures, including the application of lower risk weights that are expected to support the expansion of mortgage lending and credit to small and medium-sized businesses (SMEs).

"These changes will provide a more accurate assessment of unexpected credit risk losses from banking operations, thereby enhancing the financial resilience of banks," the regulator stated on its website Tuesday.

The updated regulations will expand the list of exposures for which risk weights are determined based on credit ratings, and will increase the number of acceptable instruments and counterparties used to mitigate credit risk.

The NBU noted that implementation of the updated requirements will be gradual. Banks will be required to revise their internal exposure calculation policies by March 1, 2026, followed by test calculations by August 1, 2026, before fully transitioning to the new credit risk-weighted exposure requirements.