The National Bank of Ukraine (NBU) from 2019 will introduce the norm of charter capital adequacy and basic requirements for systemically important banks, as well as introducing capital buffers in 2020.

The corresponding decision is fixed in NBU resolution No. 312 dated May 12, which is available on the NBU's website.

According to the resolution, the norm is defined as the ratio of basic capital to total assets and off-balance sheet liabilities, weighted by the corresponding coefficients of credit risks, while its standard value must be not less than 7%.

Banks will also have to form capital buffers, in particular, stock buffers (conservation) and countercyclical buffers. Capital buffers should be formed over the normative value of the charter capital adequacy norm. Capital stock buffers are calculated on the basis of the total amount of risk.

"Bank will form stock capital buffers (conservation) from January 1, 2020 - in the amount of 0.625%, January 1, 2021 - in the amount of 1.25%, January 1, 2022 - 1.875%, January 1, 2023 - 2.5%," reads the resolution

The size of countercyclical capital buffer is set by the NBU board decision in case of the significant credit activity of banks, taking into account risks associated with excessive crediting growth. Countercyclical capital buffer is calculated from the total risk in the amount of $0-2.5%.

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