The National Bank of Ukraine (NBU) has announced a return to the standard procedure for assessing the stability of banks and the entire banking system in 2025. The review will cover data as of January 1 and will be the first large-scale testing in the last four years. This was reported by the regulator's press service.

The stability assessment procedure will consist of three stages, the key of which will be stress testing. Independent auditors will be involved in this process, who will check the quality of banks' assets. Then the results of this assessment will be extrapolated, and the country's largest banks will undergo tests under baseline and adverse scenarios.

The third stage, namely stress testing, will cover banks that occupy leading positions in terms of the volume of individual deposits, risk-weighted assets and loans to individuals. The review will also include institutions that required additional capital based on the results of the 2023 assessment. These measures are expected to cover over 90% of the net assets of the Ukrainian banking system.

In December 2024, the NBU will approve the terms of reference for stress testing and determine the list of banks that will participate in this process. The first stage, which concerns the asset quality audit, should be completed by the end of April 2025. In August, the National Bank will summarize the results and, if necessary, send banks requirements for capitalization or restructuring programs.

This set of measures is aimed at strengthening the stability of the Ukrainian banking system. The use of external auditors and modern approaches to risk modeling ensures transparency and reliability of the assessment. The results of the testing will help identify potential weaknesses in the work of financial institutions and will contribute to strengthening their resilience to external challenges.

The National Bank believes that the return to resilience assessment is an important step for adapting the banking sector to modern conditions and increasing public trust in financial institutions. This process will become the basis for the further development of the banking system, ensuring its stability in the long term.