KIEV, Dec. 23 – Banks which violate capital adequacy requirements after stress testing by the National Bank of Ukraine should increase capital or undergo reorganization, otherwise they will be recognized as insolvent, according to a government-drafted bill on measures to facilitate banks' capitalization and restructuring registered in parliament on Tuesday.
The bill states that the base-case macroeconomic scenario foresees at least a 7% adequacy rate for Tier 1 capital, while the low-case scenario has it at least 4.5%.
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