Russian banks in Ukraine working under the supervision of the curator of the NBU

Banks with Russian capital in Ukraine are currently limited to operations, working under the supervision of the curator and looking for a buyer, said the Deputy head of the National Bank of Ukraine Ekaterina Rozhkova at a press conference in Kyiv on Tuesday, reports «Interfax-Ukraine».

NBU: Ukraine is now five troubled banks
The banking system was due to PrivatBank a record net loss of 159 billion UAH

She recalled that currently in the market there are five banks with Russian capital. «There’s two ways – either find a new owner or to gradually reduce its presence in the market,» she said.

While Rozhkov added that although Russian banks are now capitalized at the expense converted into capital previously borrowed resources of their parent banks, further expansion of their business in connection with the sanctions is problematic.

«Their capitalization (Russian banks — ed) was mainly due to conversion of previously raised maternal resources to the capital. Therefore, given the existing sanctions, talking about a potential future capital increase, we cannot, and, therefore, no development can not be, because building assets is the need for additional capital,» said Rozhkov.

NBU: Ukraine is now five troubled banks

Ukraine is now five troubled banks, but that does not mean that they will be closed. This was at the briefing on Tuesday said Deputy head of the NBU Ekaterina Rozhkova.

«For 2.5 years, banks periodically fall into the status of problems, in this period 13 banks managed to get out of problems and run fine. The status of the problematic — is not a sentence. He gives us the ability to impose certain restrictions,» she said.

Likely to problem banks, the NBU classifies companies with opaque capital structure. Now, these two banks: the «New» and «Hephaestus.»

«The Bank «New» have a majority shareholder, is a state enterprise Yuzhnoye, which refers to the military-industrial complex and space industry and is strategic. This is the reason for the delay in legalization of the property. Design Bureau owns 18% stake and the rest is sprayed among small shareholders, some of which are associated with the management of KB. It is obvious that for solution of this problem required the position of governmental authorities that are working on it», — said at the same briefing, the chief of Department of registration and licensing matters Alexander Bevz.

«Bank Gefest — this is the last Bank that was created during the «baby boom» at the end of 2013 and did not conduct any activities. In fact, this Bank problem is not only the ownership structure but capital. We set the owner, he provided a letter of guarantee. The owner is looking for a buyer. If he does not fulfill the norms of capital or find a buyer, the Bank will not remain on the market,» he added.

We will note, the head of National Bank Valeria Gontareva said that big Bank failures on the market will be no more.

«We have 40 banks in terms of assets accounted for 97% of the entire system. From the first summit you have seen, those who did not survive. Twenty-second took the test January 1, 2017. Gone «platinum» and «Fortuna-Bank». Left banks, which make up 3% of the assets of the system,» — said the head of the NBU.

The banking system was due to PrivatBank a record net loss of 159 billion UAH

The Ukrainian banking system in 2016, received a historically high loss of $ 159 billion, of which about 136 billion hryvnia — is the loss of PrivatBank due to the reserving of the loan portfolio at the end of the year. This is stated on the NBU website.

For other banks the total loss was reduced to 23 billion UAH 66 billion in 2015.

The national Bank assumes that in 2017, the banking sector may enter a profitable activity (without factor PrivatBank).

«We expect that in 2017, significantly reduced the volume of deductions in reserves on active operations, and this will give an opportunity to the banking sector as a whole to reach profitable operations after three years of substantial losses. We leave, of course, the factor of PrivatBank out of the equation. This Bank, which requires special attention and a special approach», — said at a briefing in NBU’s Director of financial stability Department Vitaly vavrischuk.

He said that in General, the regulator optimistic about 2017 in the banking sector and does not expect strong shocks.

Russian banks in Ukraine working under the supervision of the curator of the NBU 07.02.2017

Февраль 7th, 2017 by
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