NBU plans to complete banking diagnostics by mid-2017

The National Bank of Ukraine (NBU) has carried out diagnostics of 20 largest banks, accounting for 86% of the whole banking system, and expects to complete the process at the remaining banks by the middle of 2017, according to NBU Deputy Governor Kateryna Rozhkova.
”We`ve finished the diagnostics of 20 largest banks, we`ve signed a three-year program on additional capitalization with 18 banks. These 18 banks account for 86% of [Ukraine`s] banking system. Therefore, the capitalization of these banks means the finished cleanup process to us,” Rozhkova said.
She noted that the implementation of those unique programs would largely depend on shareholders and the willingness to support their banks.
”This year we`ve started the diagnostics of the next 40 banks … planned to be completed by the middle of 2017. This does not mean that the usual mode of interaction with the banks is not practiced,” Rozhkova added.
She says that the challenges faced by banks and the causes behind the deterioration of asset quality are similar for the whole banking system, and the NBU continues cooperating with shareholders and management of the banks, who are responsible for the future of the financial institutions.
As UNIAN reported earlier, in an effort to streamline the banking system, which started in 2014, the NBU declared 63 banks as insolvent institutions that were transferred under administration of the Individual Deposit Guarantee Fund. Since the beginning of this year, the NBU decided to withdraw another 11 financial institutions from the market, including a decision made jointly with the Finance Ministry to liquidate state-run Rodovid Bank.
As of May 1, there were 109 financial institutions licensed to conduct banking activity in Ukraine. The World Bank expects to see further consolidation of the banking sector in Ukraine and a reduction in the number of operating banks down to 100 in 2016.

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