RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of June 20, 2018 No. 67

About modification of the Regulations on determination by banks of Ukraine of the extent of credit risk on active banking activities

According to Articles 7, of 15, 56 Laws of Ukraine "About the National Bank of Ukraine", to Articles 44, 66 Laws of Ukraine "About banks and banking activity", for the purpose of enhancement of procedure for determination by banks of Ukraine of the extent of credit risk on active banking activities the Board of the National Bank of Ukraine decides:

1. Item 29 of the Section II of Provisions on determination by banks of Ukraine of the extent of the credit risk on active banking activities approved by the resolution of Board of the National Bank of Ukraine of June 30, 2016 No. 351 (with changes) (further - the Provision) to state in the following edition:

"29. The bank establishes values of coefficients of PD, proceeding from certain class of the debtor/partner, based on judgment of bank.

The values of coefficients of PD established by bank cannot be lower (better) than values of coefficients of PD, than the average values of the ranges determined by this Provision for the corresponding classes of the debtor/partner.

The bank has the right to apply lower (best) values of coefficients of PD, than the average values of the ranges determined by this Provision for the corresponding classes of the debtor/partner in case of simultaneous accomplishment of the following conditions:

values of coefficients of PD are based on own experience of bank at least in five years;

internal provision / domestic situations according to assets and calculation of the extent of credit risk for such assets are approved/are approved by National Bank.

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