IMPROVEMENT OF CAPITAL REGULATION OF UKRAINIAN BANKS AT THE MODERN STAGE
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Abstract
Changes in the economic situation give rise to new requirements for the regulation of the capital of Ukrainian banks and the implementation of the recommendations of the Banking Supervision Committee «Basel III: Finalharmonizationof post-crisisreforms». The article examines the current requirements of the National Bank of Ukraine for the capital of domestic banks.
Banking institutions’ compliance with existing capital requirements has been analyzed, and it has been found that the requirements to the capital ratios are mostly respected, the amount of equity, authorized capital and regulatory capital are increasing, and results of stress testing by the National Bank of Ukraine in 2018—2019 indicate a decrease in the need for capital of domestic banks. Ukrainian banking institutions fully comply with the capital and regulatory capital adequacy requirements. The new requirements of the National Bank of Ukraine are investigated: the standard of capital adequacy and regulatory capital adequacy taking into account credit, currency and operational risks; stock buffer (conservation), countercyclical and systemic importance buffer; new capital instruments that banks will be able to include in the calculation of capital ratios; changes in the structure of regulatory capital with the division of
Tier 1 capital into сommon equity Tier 1 capital and Tier 1 additional capital. Raising capital requirements of Ukrainian banks is an objectively necessary process, the main directions of
which should be clearly regulated by the National Bank of Ukraine, taking into account the needs of the national economy. It is established that their introduction will guarantees us tо inable economic growth with out the risk of loss for businesses and households; it will allow for the formation of a proper stock of capital, ensure absorption of losses during the day-to-day operations of banks, and strengthen the resilience of individual banks and the systemas a whole to possible shocks.