The Verkhovna Rada has rejected a bill on the capitalization and restructuring of banks which would have relaxed requirements on banks due to the devaluation of the hryvnia.

Only 169 deputies voted in favor of bill No. 2449.

The draft law on the capitalization and restructuring of banks would have authorized the National Bank of Ukraine to not place banks in the category of distressed and insolvent banks if the reduction of regulatory capital, the adequacy of regulatory capital, the ratios of current and short-term liquidity, and the increase of negatively classified assets on which risks should be assessed and reserves should be formed, are due to the devaluation of the hryvnia and the formation of reserves for possible losses on active banking operations.

Presenting the bill in the parliament, deputy head of the parliamentary committee on fiscal policy and banking Ruslan Demchak said that the preferences foreseen by the draft law would have only been valid if the recapitalization or financial restructuring programs agreed with the regulator were fulfilled.