National Bank of Ukraine approachable regulation of the banking sector to the standards of the European Union. As part of the European integration course and to fulfill obligations under the Ukraine Facility financial support program, the regulator updated a number of legal acts regulating the activities of banks and banking groups.
In particular, the requirements for calculating the minimum amount of risk of credit valuation adjustment (Credit Valuation Adjustment, CVA) have been introduced. This type of risk is associated with a possible decrease in the value of OTC derivatives in the event of a deterioration in the counterparty’s financial condition. Taking it into account in the calculations of capital standards allows the NBU’s approach to be fully aligned with the EU’s capital adequacy requirements.
The introduction of the new rules will take place in stages: from February 1 to March 1, 2026, banks will carry out test calculations, and from March 1 they will switch to the updated methodology. For banking groups, these requirements will come into effect on April 1, 2026.
In addition, the list of acceptable security providers to be taken into account when calculating prudential standards and credit risk has been expanded. Now banks will be able to apply guarantees provided by legal entities under public law (Public Sector Entity, PSE), which originate from the leading countries of the world and are used within the framework of international support of Ukraine. This decision should facilitate the access of Ukrainian businesses to loans and contribute to the financing of projects for the reconstruction of the country.
Also, in connection with the full transition of banking groups to European liquidity assessment standards, the use of current (H5k) and short-term (H6k) liquidity standards on a consolidated basis was canceled. From now on, liquidity will be monitored through the liquidity coverage ratio (LCRk) and net stable funding (NSFRk), also at the consolidated level.
These changes are aimed at increasing the attractiveness of the Ukrainian banking sector for investors, strengthening cooperation with international partners and supporting the development of lending and economic recovery of Ukraine.
