The national Bank of Ukraine (NBU) has expanded the list of collateral that is acceptable to calculate the size of Bank credit risk in active banking operations. In particular, the list of safeguards with local city councils, the press service of the regulator.
NBU extended the list on the basis of existing law regarding the powers of the municipal authorities for revenue collection and the institutional mechanisms that reduce the risk of default, which in turn are consistent with the approaches on account of such security in conformity with the provisions of the Basel Committee on banking supervision .
Appropriate changes to the rules on the determination of Ukrainian banks exposure to credit risk approved by the NBU Board resolution No. 113, dated November 15, 2017, and shall enter into force on the day following the day of its official publication.
Recall, the NBU Board resolution No. 351 from 30.06.2016 approved the “regulation on the determination of Ukrainian banks credit exposure in active banking operations”. The purpose of the new provisions is to provide full and timely assessment of banks size of credit risk, which should facilitate the correct calculation of their capital and, ultimately, strengthen financial stability of the banking sector.