Banks with Russian capital have worsts results of stress tests both under the baseline scenario and the adverse macroeconomic scenario, according to a report on stress tests of banks in 2019 posted on the website of the National Bank of Ukraine (NBU) on Friday.

According to the report, the results of stress tests are linked to gradual phasing out, lack of quality assets and sufficient income from the core activities of these banks.

In addition, this year the results of stress tests of state-owned Oschadbank and Ukreximbank deteriorated due to depreciation of collateral for old non-performing loans, the NBU said.

Additionally, these banks were negatively affected by the low current net interest margin and the high cost-income ratio (CIR)," the NBU said.

According to the report, also according to the results of stress tests, Ukrsotsbank needed a significant increase in capital, but in 2019 it merged with Alfa-Bank, to which the adjusted capital requirement was transferred as to a successor.

In addition, the results of stress tests of retail banks worsened significantly, due to the conservative assumption that in case of shock, a fifth of unsecured loans to individuals will become defaulted.