Auditors reviewed asset quality and performed stress tests for the largest financial institutions
The National Bank of Ukraine has released the 2026 banking sector resilience assessment results, confirming that key financial institutions maintain a sufficient capital buffer. The review included asset quality evaluations and stress testing of the country's 26 largest banks. This is reported by the portal PromPolitInform, citing information from the National Bank of Ukraine.
This year’s resilience assessment procedure for financial institutions consisted of several stages, including an external audit of credit portfolio quality as of 01 January 2026. This analysis excluded JSC “MOTOR-BANK” and JSC “FIRST INVESTMENT BANK”, which were declared insolvent in February 2026, as well as PJSC “TRANSITIONAL BANK “YUTE BANK”, which commenced operations earlier this year.
Asset quality review and stress testing
Experts extrapolated the asset quality findings to the remaining loan portfolios, which in 2026 required no adjustments for any of the banks. Simultaneously, stress testing covered 26 systematically important banks holding over 90% of the sector’s total assets.
The conducted audit confirmed that financial institutions accurately assess credit risks and maintain appropriate prudential provisions. External auditors introduced only minor adjustments that did not significantly impact the capital adequacy metrics of most market participants.
Capital needs of financial institutions
Based on the stress test results, higher capital adequacy requirements were established for only 11 banks holding 10% of the sector’s assets. Specifically, capital needs for three banks representing 6% of system assets emerged solely under the adverse macroeconomic scenario.
Meanwhile, three banks accounting for 5% of assets maintained capital adequacy levels exceeding required thresholds as of early October. Institutions undergoing stress testing for two consecutive years demonstrated improved performance and enhanced resilience.
Timeline for regulatory compliance
Unlike the previous year, two institutions no longer require additional capital. At the same time, the share of banks with elevated capital requirements decreased from 18% to 10% of sector assets, while total capital needs dropped threefold.
Under the regulatory framework, banks must achieve approved target capital levels by the beginning of 2027 and maintain them until the next resilience assessment. Failure to meet these requirements will obligate banks to submit capitalization or restructuring programs.
Photo: National Bank of Ukraine
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