The NBU said the main threat to Ukraine’s banking sector

NBU proposes to update the management of banks.

A key threat to the Ukrainian banking sector is the low operating efficiency of state banks and the poor quality of their assets.

This is stated in the Overview of the banking sector from the NBU.

The regulator proposes to accelerate the reform of state-owned banks to avoid further risks.

“A major challenge for small banks is the requirement of the Bank to provide up to July 7, 2017, the minimum Charter capital and regulatory capital of at least UAH 200 million. By the end of 2017, completed the asset quality review of small banks. This will be completed the diagnostic study of the sector, initiated in 2015”, – stated in the review.

In the NBU stressed that the share of banks, which today are at risk by the criterion of capital adequacy does not exceed 1.5% of sector assets.

“Low efficiency of state banks is a key challenge in the banking sector. The largest state-owned banks require significant change in business models and develop long-term strategies of development,” according to the national Bank.

It is proposed to upgrade the management of banks and development of independent Supervisory boards.

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