According to the new methodology, First Ukrainian International Bank (FUIB) has been recognized as a systemically important bank. In total, the regulator has recognized 14 out of the 76 banks as systemically important.
The status of a systemically important bank imposes additional obligations on the bank. From January 1, 2020, FUIB has to comply with the increased key standards: bank's quick liquidity ratio (H4) must be at least 30%, and the maximum credit exposure per one counterparty (H7) must not exceed 20%.
"When our bank was undergoing stress testing last year, the auditors said that we were too conservative. This is a real compliment for a bank. This means that FUIB is more secure and better prepared for various – including crisis – scenarios. The National Bank of Ukraine imposes additional requirements on systemically important banks, which will come into force in 2020. We have already partially implemented them. For example, while all banks must have quick liquidity of 20%, and the standard for systemically important banks is 30%, as at the end of 2018, in FUIB this figure was already 69%," commented Serhiy Chernenko, FUIB's chairman of the board.
At the beginning of the year, the H7 standard in the bank amounted to 15.3%, and as at May 31, 2019, it decreased to 14.9%.
In addition to the normative value of capital adequacy, systemically important banks must also form a systemic importance buffer, which will come into force on January 1, 2021. In case of FUIB, the size of the buffer is 1%.
In addition, banks will have to develop a recovery plan in accordance with the requirements of the National Bank of Ukraine, which will facilitate rapid stabilization of the work of these institutions during crises.
The list of systemically important banks includes 4 state-owned banks, 6 banks with foreign capital, and 4 banks with Ukrainian capital. You can familiarize yourself with the list of systemically important banks by following the link.