Capitalization of Ukrainian systemically important banks of military aggression of the rf

Abstract

Introduction. Systemically important banks (SIB) play an important role in stability of the do­mestic banking and financial system since their activities significantly affect the country’s finan­cial system and the economy as a whole. Problem. Domestic banking system constantly functions in a mode of stress and uncertainty In conditions of war, therefore the National Bank of Ukraine pays special attention to the activities of systemically important institutions. Ensuring the proper functioning of SIB depends on the level of their capitalization, which is why the capitalization of systemically important banks is an extremely urgent issue today. The aim of the article is to determine the ability of SIB to meet capital adequacy require­ments as a factor of ensuring the stability and reliability of the domestic banking system and its macroeconomic stress resistance under martial law. Methods. Methods of theoretical genera­lization, analysis and synthesis, grouping, sys­tem approach were used in the paper. Results. The value of the capital standards of domestic SIB during the period of martial law was investigated, a comparative analysis of ca­pitalization indicators of SIB of Ukraine with their normative and forecast values under basic and adverse macroeconomic scenarios was car­ried out according to the results of the NBU stress testing. Banks that show signs of an unfa­vorable macroeconomic scenario have been iden­tified, and recommendations have been develo­ped regarding the need to take additional measures to increase the stress resistance of banks. Conclusions. In conditions of war, the SIB of Ukraine fulfills the requirements regarding the target values of the capital standards and has a sufficient margin of safety due to the appropriate level of capitalization, although the implemen­ta­tion of the basic macroeconomic scenario tur­ned out to be impossible, which caused lower than forecast capital indicators. Therefore, the regu­la­tor should pay additional attention to those banks that demonstrate negative trends for the implementation of an unfavorable macroeconomic scenario at this stage and prepare a set of mea­sures for their recapitalization in advance.