The prolongation of the war requires more information about the current state and dynamics of the assets of Ukrainian banks, so the National Bank is stepping up work in this direction, Deputy Governor of the National Bank of Ukraine (NBU) Serhiy Nikolaychuk has said.

"Now we still do not see an objective picture. Only some banks began to reflect the deterioration in the quality of their assets on a portfolio basis in their statements for March," he said in an interview with Interfax-Ukraine.

According to him, different banks used different approaches: some were more conservative, "some didn't change anything at all."

"Now we are going to actively work with banks in order to see the picture as objectively as possible," Nikolaychuk said, adding that the final assessment of the state of the assets would be made after a corresponding audit after the end of the war.

According to him, the banking system has passed the initial "crash test" of the war very well and is working smoothly. "But it is clear that the medium-term challenge for the banking system is a significant deterioration in the quality of its assets," the NBU deputy governor explained.

He recalled that the National Bank initiated and adopted legislative changes that allow banks to violate the capital, solvency and liquidity standards, which "exist in order for banks to have a certain margin of safety in case of negative events."

"But after the end of the war, we will need to develop a recapitalization program together with banks, restoring indicators of stability to standard normative values," Nikolaychuk emphasized.