Transfer of banks to IFRS9 unlikely to entail large additional capitalization
The transfer of Ukrainian banks to IFRS9 would unlikely create a necessity of considerably increasing their capitalization, Deputy Board Chairman of the National Bank of Ukraine (NBU) Kateryna Rozhkova has said.
"According to the law, banks by April 30 were to present their audit reports to us. We have received these reports. They are being processed by the supervision department for each bank… Auditors, according to the legislation, must notify the NBU about the facts of a lack of reserves and capital before the approval of their reports, if they see them. We did not receive these notifications, and I expect that everything would be more or less good," she told reporters at a public event of the USAID Financial Sector Transformation Project (FST) in Kyiv on Tuesday.
As reported, Ukrainian banks since January 1, 2018 are obliged to switch to the international standard of financial reporting IFRS9. The relevant transition includes the reclassification of a number of financial assets, new principles for assessing credit risks, as well as a change in the volatility of profit indicators and basic indicators of financial institutions.
Earlier the NBU said that the influence of the transfer and the need in the further capitalization of banks would be seen after the results of the first quarter when banks publish their quarterly reports.
– NBU deputy head
KYIV. May 16 (Interfax-Ukraine) – The transfer of Ukrainian banks to IFRS9 would unlikely create a necessity of considerably increasing their capitalization, Deputy Board Chairman of the National Bank of Ukraine (NBU) Kateryna Rozhkova has said.
"According to the law, banks by April 30 were to present their audit reports to us. We have received these reports. They are being processed by the supervision department for each bank… Auditors, according to the legislation, must notify the NBU about the facts of a lack of reserves and capital before the approval of their reports, if they see them. We did not receive these notifications, and I expect that everything would be more or less good," she told reporters at a public event of the USAID Financial Sector Transformation Project (FST) in Kyiv on Tuesday.
As reported, Ukrainian banks since January 1, 2018 are obliged to switch to the international standard of financial reporting IFRS9. The relevant transition includes the reclassification of a number of financial assets, new principles for assessing credit risks, as well as a change in the volatility of profit indicators and basic indicators of financial institutions.
Earlier the NBU said that the influence of the transfer and the need in the further capitalization of banks would be seen after the results of the first quarter when banks publish their quarterly reports.