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RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of June 7, 2024 No. 65

About approval of Changes in some regulatory legal acts of the National Bank of Ukraine and establishment of transitional regulations on introduction of updated requirements to the capital of banks

According to Articles 7, 15, 55, 56, 58 Laws of Ukraine "About the National Bank of Ukraine", Articles 4, 30, 35, 66, 67, 69, 73 Laws of Ukraine "About banks and banking activity", Item 10 of the Section II of the Law of Ukraine of June 30, 2021 No. 1587-IX "About modification of some legal acts of Ukraine concerning enhancement of questions of the organization of corporate management in banks and other questions of functioning of bank system", for the purpose of implementation of provisions of Regulations of the European Parliament and Council (EU) No. 575/2013 of June 26, 2013 about prudential requirements to credit institutes and about modification of Regulations (EU) No. 648/2012 (with changes) and Directives of the European Parliament and Council No. 2013/36/EU of June 26, 2013 about access to activities of credit institutes and prudential supervision of credit institutes and investment firms, about modification of the directive No. 2002/87/EU and about cancellation of directives No. 2006/48/EU and No. 2006/49/EU concerning calculation of capital adequacy ratios and buffers of the capital, for ensuring further credit support of domestic economy the Board of the National Bank of Ukraine decides:

1. Approve Changes in:

1) the Instruction about procedure for regulation of activities of banks in Ukraine approved by the resolution of Board of the National Bank of Ukraine of August 28, 2001 No. 368, of Ukraine registered in the Ministry of Justice on September 26, 2001 at No. 841/6032 (with changes) (further - the Instruction No. 368) which are applied;

2) Regulations 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 the enclosed changes);

3) Regulations on procedure for determination by banks of Ukraine for the minimum extent of the market risk approved by the resolution of Board of the National Bank of Ukraine of December 30, 2021 No. 162 (with the enclosed changes);

4) Regulations on procedure for determination by banks of Ukraine for the size of the regulatory capital approved by the resolution of Board of the National Bank of Ukraine of December 28, 2023 No. 196 (with changes) (further - No. Provisions 196) which are applied.

2. To banks of Ukraine, starting with the reporting as of August 06, 2024 to submit data of rather regulatory capital (including subordinated debt) and prudential standard rates according to procedure for forming of indicators of the statistical reporting, placed on the page of official Internet representative office of the National Bank of Ukraine in the Section "Statistics/organization of the Statistical Reporting / Register of Indicators of the Statistical Reporting", and taking into account information on submission of such data placed on the web portal of the National Bank of Ukraine (further - National Bank).

To submit to banks of Ukraine data according to the requirements established in paragraph one of Item 2 of this resolution before the date of entry into force of the changes in Rules of the organization of the statistical reporting submitted to the National Bank of Ukraine in the conditions of the special period approved by the resolution of Board of the National Bank of Ukraine of December 18, 2018 No. 140 (with changes), and the Rules of the organization of the statistical reporting submitted to the National Bank of Ukraine, approved by the resolution of Board of the National Bank of Ukraine of November 13, 2018 No. 120 (with changes), regarding data presentation of rather regulatory capital (including subordinated debt) and the prudential norms determined in Item 2 of this resolution.

3. Banks of Ukraine in case of application of requirements of the Provision No. 196 have the right:

(Inclusive) to include 1) till December 31, 2024 in components of fixed capital of 1 level (further - OK1) the amount of the means received by bank in payment of simple shares / the common shares directed to increase in nominal value which are considered on account 5004 "Unregistered authorized capital" as of day of entry into force of this resolution if the bank created judgment that there are no bases to consider that state registration of corresponding changes in the charter of bank will not take place;

2) in case of application of requirements of Item 24 of Chapter 5 of the Section II of Provisions No. 196:

include in OK1 profit for the first half of the year, 9 months 2024 (indicator "Profit of OK1 ROM") without approval of its inclusion by National Bank in the capital of bank;

determine indicator "Profit of ROM "as the profit amount for the first half of the year, 9 months 2024 (after the taxation) determined based on data of the A4H "Data on the Adjusting Turnovers by results of the Accounting Period, Year and Account Balances" file (further - the A4H file) for the first half of the year, 9 months 2024 respectively, without carrying out survey of interim financial statements of bank by the auditor for these periods.

The bank has the right to include in OK1 profit for the first half of the year, 9 months 2024 (indicator "Profit of OK1 ROM") determined taking into account requirements of paragraphs two, the third subitem 2 of Item 3 of this resolution from the date of, the submission to National Bank of the A4H file following behind day, before the date which came earlier from two:

dates of inclusion in the capital of bank of profit for 2024 according to requirements of Items 23 and 25 of Chapter 5 of the Section II of Provisions No. 196;

acceptance dates general meeting of shareholders / the single shareholder of bank of the decision on approval of profit for 2024;

3) in case of application of requirements of the subitem 1 of Item 60 of Chapter 11 of the Section II and subitem 1 of Item 68 of Chapter 12 of the Section III of Provisions No. 196 to turn on tools with conditions of write-off/conversion and subordinated debts which joined bank in calculation of the capital till August 04, 2024 (inclusive), in the supplementary capital of 1 level and the capital 2 levels respectively during terms of consideration by National Bank according to requirements of Chapter 19 of the Section V of the Provision No. 196 of the documents of bank concerning approval of their inclusion in the capital provided till September 01, 2024 (inclusive).

4. The National Bank does not apply to banks of corrective actions on:

1) submission to National Bank of the statistical reporting under prudential standard rates with reporting dates from August 06 to September 01, 2024 (inclusive) in which the mistakes connected with transition to calculation of the size of the capital according to requirements of the Provision No. 196 are revealed;

2) violations during the period from August 05 to December 31, 2024 (inclusive) of the values of standard rates of the capital, credit risk, investment (further - prudential standard rates) established by the Instruction No. 368, and the limits of open foreign exchange position set in Item 12-7 of the resolution of Board of the National Bank of Ukraine of February 24, 2022 No. 18 "About work of bank system during introduction of warlike situation" (with changes) which are connected with introduction of requirements of the Provision No. 196 and the changes made to the Instruction No. 368 by this resolution provided that the bank within 30 calendar days from the date of violation submitted to National Bank the program the capitalization/restructuring plan (further - the Program) and is provided by accomplishment of the program approved by National Bank in the terms determined in it.

5. The bank to which requirements of the subitem 2 of item 4 of this resolution extend constitutes the program taking into account requirements of Items 2, of 3, 5-8 Sections I, Items 11, of the 12th Section II and Items 15, of the 16th Section III of Appendix to rules of implementation of assessment of stability of the banks and bank system of Ukraine in 2023 approved by the resolution of Board of the National Bank of Ukraine of April 25, 2023 No. 56 (with changes) (further - Rules No. 56).

The program shall include the list of actions for capitalization/restructuring which will provide observance by bank of the prudential standard rates and limits of open foreign exchange position determined by bank taking into account its strategy and the business plan, reasonable periods of accomplishment of each action and calculations of economic effect of their implementation, and also documentary confirmation of sales opportunity of the planned actions.

The bank in case of receipt of notes from National Bank to the program according to the subitem 1 of Item 6 of this resolution considers the provided notes and submits the modifed program to National Bank within 30 calendar days from the date of receipt of such notes.

6. Committee on questions of supervision and regulation of activities of banks, oversight of payment infrastructure (further - Committee on questions of supervision):

1) within 30 calendar days from the date of receipt of the program by National Bank considers it and:

submits to board of National Bank the proposal on approval of the program provided that there are no reasonable notes;

makes the decision on discrepancy of the program provided by bank to the requirements established in paragraphs one, the second Item 5 of this resolution, and on provision to bank of reasonable notes;

2) within 30 calendar days from the date of receipt of the modifed program by National Bank considers it and:

submits to board of National Bank the proposal on approval of the modifed program if there are no reasonable notes to the program;

submits to board of National Bank the proposal on discrepancy of the program finished by bank to the requirements established in Item 5 of this resolution, and on application to bank of corrective action.

7. Board of National Bank according to the offer of committee on questions of supervision provided according to Item 6 of this resolution:

1) approves the program / the modifed program in case of its compliance to the requirements established in Item 5 of this resolution;

2) makes the decision on discrepancy of the program finished by bank to the requirements established in Item 5 of this resolution.

8. The National Bank exercises control over the implementation by bank of the Program approved by National Bank according to the Section IV of appendix to Rules No. 56.

9. The bank performing the activities according to the program the capitalization/restructuring plan which is constituted/constituted by results of stability assessment, the plan of financial improvement / the actions plan the written agreement signed with the National Bank (dalee-Plan) providing measures for capitalization/restructuring and on which:

1) requirements of the subitem 2 of item 4 of this resolution extend, provides accomplishment of the conditions established in the subitem 2 of item 4 of this resolution concerning representation and ensuring accomplishment of the Program by updating of the existing Plan, except the Plan constituted by results of the stability assessment which is carried out in 2021.

The bank performs updating of the Plan taking into account the measures necessary for ensuring compliance by bank with prudential standard rates and limits of open foreign exchange position, the requirements of the Provision No. 196 and changes made to regulatory legal acts of National Bank including the changes made by this resolution (further - regulatory legal acts of National Bank concerning regulation of activities of banks).

The bank submits the updated Plan to National Bank for consideration within 30 calendar days from the date of violation of prudential standard rates and limits of open foreign exchange position;

2) requirements of the subitem 2 of item 4 of this resolution do not extend, updates if necessary the existing Plan taking into account requirements of regulatory legal acts of National Bank concerning regulation of activities of banks and submits the updated Plan to National Bank for consideration till August 05, 2024.

10. The bank performing the activities according to the plan constituted by results of the stability assessment which is carried out in 2021:

1) is updated by the Plan taking into account requirements of regulatory legal acts of National Bank concerning regulation of activities of banks and gives it for consideration of National Bank within 30 calendar days after the termination or cancellation of warlike situation;

2) constitutes the program according to Item 5 of this resolution and submits it for consideration to National Bank in the terms determined in the subitem 2 of item 4 of this resolution, in case of violation of prudential standard rates and limits of open foreign exchange position during the period from August 05 to December 31, 2024 (inclusive), the Provisions No. 196 connected with introduction of requirements and the changes made to the Instruction No. 368 by this resolution.

11. The National Bank performs consideration and approval of the updated plan according to Items 9, 10 these resolutions according to the procedure and in the terms determined in Items 6 and 7 of this resolution and also exercises control over the implementation of this plan according to the Section IV of Appendix to Rules No. 56.

12. The bank performing the activities according to the plan constituted by results of the stability assessment which is carried out in 2023 and for which the necessary level of the standard rate of sufficiency of the regulatory capital was determined at the level of the normative value established by the Instruction No. 368, has the right to provide observance of necessary level of the standard rate of sufficiency of the regulatory capital according to Item 35 of the Section IV of Rules No. 56 proceeding from the minimum value of this standard rate established in Item 1.7 of Chapter 1 of the Section IV of the Instruction No. 368, with the changes brought by this resolution.

13. To department of methodology of regulation of activities of banks (Oksana Prisyazhenko) after official publication to inform banks of Ukraine information on adoption of this resolution.

14. The resolution becomes effective from the date of, its official publication following behind day, except Item 1, which becomes effective since August 5, 2024.

Approved by the Resolution of Board of the National Bank of Ukraine of June 7, 2024 No. 65

Changes in the Instruction about procedure for regulation of activities of banks in Ukraine

1. In the Section I:

In paragraph three of the word "establishes procedure for determination of the regulatory capital of bank and such prudential standard rates" shall be replaced with words 1) "determines procedure of payments of prudential standard rates";

Paragraphs of the sixth, seventh to replace 2) with three new paragraphs the sixth or eighth the following content:

"sufficiency of the regulatory capital (NRK);

capital adequacy of 1 level (HK1);

sufficiency of fixed capital of 1 level (HOK1);".

With respect thereto the eighth-twenty fourth to consider paragraphs respectively paragraphs the ninth-twenty fifth;

The paragraph of the twenty second to replace 3) with two new paragraphs twenty second, twenty third the following content:

"The bank does not include in calculation of prudential standard rates, one of components of which is the regulatory capital or its components, assets or their parts included in deductions from the capital of bank according to Regulations on procedure for determination by banks of Ukraine for the size of the regulatory capital approved by the resolution of Board of the National Bank of Ukraine of December 28, 2023 No. 196 (with changes) (further - No. Provision 196).

The bank when calculating the cumulative size of the assets weighed on degree of credit risk according to Item 1.2 of Chapter 1 of the Section IV of this Instruction does not consider assets which contain in the trade book and are included by bank in calculation of the minimum extent of market risk according to requirements of the Regulations on procedure for determination by banks of Ukraine for the minimum extent of the market risk approved by the resolution of Board of the National Bank of Ukraine of December 30, 2021 No. 162 (with changes) (further - No. Provision 162).".

2. State Sections II, III in the following edition:

"II. Requirements to the capital size

1. The bank according to the Provision No. 196 calculates the size:

1) regulatory capital;

2) capital of 1 level;

3) fixed capital of 1 level;

4) capital 2 levels.

2. The minimum size of the regulatory capital (The N 1) makes 200 million UAH.

3. The minimum size of the regulatory capital (The N 1) of the bank which lost the status of transitional bank on the bases determined by part of the seventeenth article 42 of the Law of Ukraine "About system of guaranteeing household deposits" shall conform to requirements of Item 2 of the Section II of this Instruction.

III. Requirements to capital adequacy of bank

1. The bank shall support the capital level sufficient for simultaneous observance on permanent basis:

1) the minimum values of the capital adequacy ratios established in Chapters 1, 2 Sections IV of this Instruction;

2) the increased values of the capital adequacy ratios established by results of assessment of bank which is carried out during banking supervision;

3) the size of the combined capital buffer according to Chapter 3 of the Section IV of this Instruction;

4) the level of sufficiency of domestic capital according to the Regulations on the organization of process of assessment of sufficiency of domestic capital in banks of Ukraine and banking groups approved by the resolution of Board of the National Bank of Ukraine of December 30, 2021 No. 161 (with changes).

2. The bank is forbidden to pay dividends, to share profit in any form if such payment or distribution lead to non-compliance with level of the capital necessary for ensuring fulfillment of requirements, established in Item 1 of the Section III of this Instruction.

3. Capital adequacy ratios [the standard rate of sufficiency of the regulatory capital (NRK), capital adequacy ratio of 1 level (HK1) and the standard rate of sufficiency of fixed capital of 1 level (HOK1)] are the most important indicators of activities of bank determining the actual level of providing covering of effects of risks which the bank undertakes in the course of the activities.".

3. In the Section IV:

Heading of the Section to state 1) in the following edition:

"IV. Capital adequacy ratios";

2) in Chapter 1:

heading of Chapter, Items 1. 1.2 to state 1, in the following edition:

"Chapter 1. Standard rate of sufficiency of the regulatory capital (NRK)

1.1. The standard rate of sufficiency of the regulatory capital (NRK) is calculated as the relation of the size of the regulatory capital to cumulative exposure under risk.

1.2. The bank determines cumulative exposure under risk by the following formula:

SE = KR + SHOUTING * 10 + RR * 10 + Ri-NKR,

where XIE-cumulative impact of risk;

The KR-cumulative size of the assets weighed on degree of credit risk which is calculated as total book value of the assets and off-balance obligations weighed on degree of credit risk according to Items 1.3-1.6 of Chapter 1 of the Section IV of this Instruction after their reduction by the amount of the providing determined in Item 2.5 of Chapter 2, Item 5 of Chapter 4 of the Section VI of this Instruction taking into account requirements of Item 29 of Chapter 1, of Chapter 5 of the Section VI of this Instruction;

The SHOUTING-minimum extent of operational risk calculated according to Regulations on procedure for determination by banks of Ukraine for the minimum extent of the operational risk approved by the resolution of Board of the National Bank of Ukraine of December 24, 2019 No. 156 (with changes);

RR-minimalny the extent of market risk calculated according to the Provision No. 162;

Ri-sovokupny the size of the differences arising owing to moving of tools to the bank/trade book according to requirements of Item 257-4 of Chapter 39 of the Section V of the Regulations on the organization of risk management system in banks of Ukraine and banking groups approved by the resolution of Board of the National Bank of Ukraine of June 11, 2018 No. 64 (with changes) (dalee-Polozheniye No. 64), also reduce cumulative exposure under risk, calculated according to Item 1.6 of Chapter 1 of the Section IV of this Instruction;

NKR-nepokryty the credit risk calculated according to Items according to Items 31, 32 Chapters 7 of the Section II of Provisions No. 196.";

in Item 1.3:

the paragraph one to state in the following edition:

"1.3. The bank for calculation of capital adequacy ratios divides assets into groups on risk degree and sums up them taking into account the corresponding coefficients of weighing:";

the paragraph the ninth the subitem "v", the paragraph the seventeenth the subitem "d" to add paragraph two of the subitem "e" after the word "papers" with words "(except tools of the capital of organizations of the financial sector)";

add the subitem "e" with four new paragraphs of the following content:

"parts of book value of the financial instrument, delayed tax asset, intangible asset in the form of computer program providing / the rights to the computer program which are not included in deductions from the capital according to requirements of the Provision No. 196;

securities of not diversified investment funds;

the securities which are not in circulation on the stock exchanges and carried at fair value;

the securities which are not included in the exchange register and carried at fair value (except the securities emitted by the central executive bodies of Ukraine, the Public mortgage institution and local government bodies of Ukraine, included in other risk groups determined in Item 1.3 of Chapter 1 of the Section IV of this Instruction).";

Items 1. 1.7 to replace 6, with three new Items 1.6-1.8 of the following content:

"1.6. The bank for determination of the size of the difference arising owing to moving of the tool to the bank/trade book also reduces cumulative exposure under risk (further - difference), performs the following consecutive measures for date of movement of the tool:

1) determines the amount of the cumulative size of the assets weighed on degree of credit risk according to requirements of Item 1.3 of Chapter 1 of the Section IV of this Instruction, and the minimum extent of the market risk calculated according to requirements of the Provision No. 162 and increased by coefficient 10, calculated without movement of the tool;

2) determines the amount of the cumulative size of the assets weighed on degree of credit risk according to requirements of Item 1.3 of Chapter 1 of the Section IV of this Instruction, and the minimum extent of the market risk calculated according to requirements of the Provision No. 162 and increased by coefficient 10, calculated taking into account movement of the tool. When calculating such amount the influence caused only by movement of the tool is considered;

3) is determined by the difference size as exceeding of the size determined according to the subitem 1 of Item 1.6 of Chapter 1 of the Section IV of this Instruction over the size determined according to the subitem 2 of Item 1.6 of Chapter 1 of the Section IV of this Instruction.

The bank includes difference in cumulative risk exposure from reporting date which is following by date of moving of the tool to the bank/trade book, before date of derecognition of the moved tool.

1.7. The minimum value of the standard rate of sufficiency of the regulatory capital (NRK) for banks makes:

1) till December 31, 2024 (inclusive) - percent 8,5 from cumulative exposure under risk;

2) till June 30, 2025 (inclusive) - percent 9,25 from cumulative exposure under risk;

3) since July 01, 2025 - 10 percent from cumulative exposure under risk.

1.8. The minimum value of the standard rate of sufficiency of the regulatory capital (NRK) for the banks beginning banking activity makes:

1) within the first 12 months of activities (from the date of receipt of the license) - 15 percent from cumulative exposure under risk;

2) within the next 12 months - 12 percent from cumulative risk exposure;

3) further - 10 percent from cumulative exposure under risk.";

Chapter 2 to state 3) in the following edition:

"Chapter 2. Capital adequacy ratio of 1 level (HK1), standard rate of sufficiency of fixed capital of 1 level (HOK1)

1. The bank calculates capital adequacy ratio of 1 level (HK1) as the relation of the size of the capital of 1 level to cumulative exposure under risk.

The minimum value of capital adequacy ratio of 1 level (HK1) constitutes percent 7,5 from cumulative exposure under risk.

2. The bank calculates the standard rate of sufficiency of fixed capital of 1 level (HOK1) as the relation of the size of fixed capital of 1 level to cumulative exposure under risk.

The minimum value of the standard rate of sufficiency of fixed capital of 1 level (HOK1) constitutes percent 5,625 from cumulative exposure under risk.";

4) in Chapter 3:

in paragraph one of Item 2 of the word of "the total amount of risk" shall be replaced with words "cumulative exposure under risk";

Item in paragraph three 3, the paragraph third Item 5 of the word of "the total amount of risk of bank" shall be replaced with words "cumulative exposure under risk";

6, 7 to state Items in the following edition:

"6. The bank creates capital buffers by fixed capital of 1 level.

7. The bank adheres to the combined capital buffer on condition of simultaneous ensuring accomplishment of the following requirements:

The actual value of the standard rate of sufficiency of the regulatory capital (NRK) makes 1) at least, than the cumulative extent of the minimum value of this standard rate or its special value established according to the Section VIII of this Instruction, and the combined capital buffer;

2) the actual value of capital adequacy ratio of 1 level (HK1) constitutes at least, than the cumulative extent of the minimum value of this standard rate and the combined capital buffer;

3) the actual value of the standard rate of sufficiency of fixed capital of 1 level (HOK1) constitutes at least, than the cumulative extent of the minimum value of this standard rate and the combined capital buffer.";

add Chapter with new Item of the following content:

"8. The bank to which by results of banking supervision the increased values of capital adequacy ratios are established adheres to the combined capital buffer on condition of simultaneous ensuring accomplishment of such requirements:

The actual value of the standard rate of sufficiency of the regulatory capital (NRK) makes 1) at least, than the cumulative extent of the increased value of this standard rate and the combined capital buffer;

2) the actual value of capital adequacy ratio of 1 level (HK1) constitutes at least, than the cumulative extent of the increased value of this standard rate and the combined capital buffer;

3) the actual value of the standard rate of sufficiency of fixed capital of 1 level (HOK1) constitutes at least, than the cumulative extent of the increased value of this standard rate and the combined capital buffer.".

4. In the Section VI:

1) in Chapter 1:

state Item 19 in the following edition:

"19. The bank includes in calculation of standard rates of credit risk active transactions at book value without the amounts of discounts (except the expected credit losses which according to the regulatory legal act of National Bank concerning accounting of financial instruments are reflected in separate accounts of discounts if such credit losses are not considered on accounts of reserves) / awards, and also imputed incomes by which fixed capital of 1 level according to requirements of the Provision No. 196 decreases.";

the paragraph one of the subitem 3 of Item 21 to state in the following edition:

"3) credit risk management in the participant of PILES is exercised according to the Provision No. 64 and intra group documents, namely:";

2) in Chapter 4:

state Item 2 in the following edition:

"2. The norm of H9 is determined as ratio of the cumulative amount of all requirements of bank to the faces tied with bank and the amounts of all financial liabilities provided by bank of the faces which are rather tied with bank to the general size of the capital of 1 level and the capital 2 levels calculated without the size of exceeding of the standard rate H9, calculated according to requirements of the Provision No. 196.";

in Item 9 of the word and figures "Item 1.8 of Chapter 1 of the Section II of this Instruction" shall be replaced with words also in figures "requirements of the Provision No. 196".

5. In the Section VIII:

1) in Chapter 1:

in the paragraph the second Item 1.4 of the word, letter and figure" (adequacy) of the regulatory capital (2)" shall be replaced with words N also letters of "the regulatory capital (NRK)";

to add Item 1.8 after the word of "percent" with the word of "regulating";

In paragraph one of Item 4.1 of Chapter 4 of the word" which was created according to the paragraph the second parts of the sixteenth" shall be replaced with words 2) "on the bases determined by part of the seventeenth".

6. In the Section IX:

1) in Item 1.2 of Chapter 1:

word in paragraph one "(legal entities)" to exclude;

to state paragraph two of the subitem "an" in the following edition:

"standard rates of the minimum size of the regulatory capital of bank (N 1), sufficiency of the regulatory capital (NRK), capital adequacy of 1 level (HK1), sufficiency of fixed capital of 1 level (HOK1), the maximum extent of credit risk on one partner (N 7), big credit risks (N 8), the maximum extent of credit risk on transactions with the faces tied with bank (N 9) and the combined capital buffer;";

to state paragraph two of the subitem "v" in the following edition:

"coefficient of net stable financing (NSFR)";

Paragraphs of the first, second of Item 2.1 of Chapter 2 to replace 2) with four new paragraphs the first or fourth the following content:

"2.1. The branch of foreign bank shall carry out the following prudential standard rates:

sufficiency of the regulatory capital (NRK);

capital adequacy of 1 level (HK1);

sufficiency of fixed capital of 1 level (HOK1);".

7. In paragraph one, column heading 4 tables, the paragraph third Item 3 of the Section X of the word of "the total amount of risk" shall be replaced with words "cumulative exposure under risk".

8. 1, 2 to the Instruction to exclude appendices.

Approved the Resolution of Board of the National Bank of Ukraine of June 7, 2024 No. 65

Changes in Regulations on determination by banks of Ukraine of the extent of credit risk on active banking activities

1. To add Item 6 of the Section I with three new paragraphs of the following content:

"Banks determine credit risk by all active banking activities, except:

1) assets which contain in the trade book and are included by bank in calculation of the minimum extent of market risk according to requirements of the Regulations on procedure for determination by banks of Ukraine for the minimum extent of the market risk approved by the resolution of Board of the National Bank of Ukraine of December 30, 2021 No. 162 (with changes);

2) assets (their part) which are included in deductions from the capital of bank according to requirements of the Regulations on procedure for determination by banks of Ukraine for the size of the regulatory capital approved by the resolution of Board of the National Bank of Ukraine of December 28, 2023 No. 196 (with changes) (further - No. Provision 196).".

2. In the paragraph the second Item 36 of the Section II of the word "currency rate" shall be replaced with words "the hryvnia exchange rate to foreign currencies".

3. The paragraph one of Item 40 of the Section III to state in the following edition:

"40. The bank determines credit risk on: to the loans granted to legal entities, banks, budgetary institutions, physical persons; to the means placed on correspondent accounts in other banks, to means of banks on accounts of conditional storage (eskro) and means of banks in calculations (further - the means placed in other banks) which are considered according to balance sheet accounts of such groups:".

4. In Items 124, of 127, 127-1, paragraph one of Item 129 of the Section XI of the word "currency rate" shall be replaced with words "the hryvnia exchange rate to foreign currencies".

5. To state the subitem 1 of Item 132-1 of the Section XI-1 in the following edition:

"1) the total amount of EAD on all financial assets and financial liabilities of the debtor/partner (or the equivalent of this foreign currency amount determined by the official rate of hryvnia to foreign currencies established by National Bank for date of determination of the extent of credit risk) on which the bank applies the simplified approach, does not exceed 0,2 of % of the size of the capital of 1 level of the bank determined according to requirements of the Provision No. 196 of date of assessment of credit risk;".

6. In Item 143 of the Section XIII of the word "currency rate" shall be replaced with words "the hryvnia exchange rate to foreign currencies".

7. The paragraph one of Item 150 of the Section XV to state in the following edition:

"150. The bank perfroms calculation of the extent of credit risk for securities on individual basis. The bank performs assessment of credit risk on securities which are considered according to balance sheet accounts of such groups"".

Approved by the Resolution of Board of the National Bank of Ukraine of June 7, 2024 No. 65

Changes in Regulations on procedure for determination by banks of Ukraine for the minimum extent of market risk

1. In the Section I:

Item 10 to exclude 1);

Item 11 to state 2) in the following edition:

"11. The bank does not turn on in calculation of the minimum extent of market risk tools and part long risk line item of the financial instrument which belongs to insignificant investments in tools of the capital of organization of the financial sector which turn on in deductions from the capital, according to requirements of the Regulations on procedure for determination by banks of Ukraine for the size of the regulatory capital approved by the resolution of Board of the National Bank of Ukraine of December 28, 2023 No. 196 (with changes).";

The subitem 2 of Item 13 to state 3) in the following edition:

"2) the tools sensitive to interest risk of the trade book and equity risk included bank in cumulative exposure under risk when calculating capital adequacy ratios according to requirements of Item 1.1 of Chapter 1 and Items 1, in 2 Chapters 2 of the Section IV of the Instruction No. 368.".

Approved by the Resolution of Board of the National Bank of Ukraine of June 7, 2024 No. 65

Changes in Regulations on procedure for determination by banks of Ukraine for the size of the regulatory capital

1. In the Section I:

The subitem 6 of Item 2 of Chapter 1 to add 1) with words ", except the amount of the dividends announced to payment from this profit";

Item 15 of Chapter 2 to add 2) with the words "in hryvnia / hryvnia equivalent on the official rate of hryvnia to foreign currencies established by National Bank for settlement date".

2. In the Section II:

The subitem 5 of Item 19 of Chapter 4 to state 1) in the following edition:

"5) positive result of value adjustment of financial instruments on transactions with shareholders of bank during initial recognition which were considered on balance of bank as of November 15, 2023.";

2) in Chapter 5:

in Item 24:

in the paragraph the second words and letters" (Profit P - Dividends P)" shall be replaced with words also letters "(Profit P/ZR-Dividendy of P/ZR)";

to state paragraphs of the seventh, eighth in the following edition:

"Profit of P/ZR - the amount of the current profit / profit of accounting year which belong besides to accounting year, as Profit of ROM, for settlement date;

Dividends P/ZR - the amount of the dividends assumed to payment from the current profit / profit of accounting year, calculated according to Chapter 6 of the Section II of this provision.";

add Item 25 with the new paragraph of the following content:

"Inclusion by bank in OK1 at the same time the amounts of profit of reporting year / amount of profit for the intermediate accounting period relating to one accounting year is not allowed.";

3) in the subitem 1 of Item 30 of Chapter 7:

in paragraph six of the word "result of revaluation" shall be replaced with words "result of value adjustment";

to exclude the paragraph of the eighth;

4) in Chapter 8:

in Item 35:

in paragraph one of the word "Intangible assets" shall be replaced with words "Intangible asset";

add Item with the new paragraph of the following content:

"Replacement of the applied approach on inclusion of NMA from OK1 during the period of its recognition in balance is not allowed by KP to deductions.";

add Item 38 with the new paragraph of the following content:

"The bank has the right in case of the beginning of depreciation to determine accumulated prudential depreciation of NMA of KP since the first in which charge of such depreciation is begun by the KP NMA according to accounting rules as of the first following after month in which this asset became suitable for useful use.";

5) in Chapter 10:

to add the paragraph of the sixth of Item 56 with the new offer of the following content: "Reserves of PND join in calculation in the amount of not bigger, than amount/difference of indicators of PND and the Revaluation/writedown of PND";

to add the paragraph of the sixth of Item 57 with the new offer of the following content: "Reserves of AF join in calculation in the amount of not bigger, than amount/difference of indicators of AF and the Revaluation/writedown of AF".

3. In paragraph one of the subitem 2 of Item 69 of Chapter 12 of the Section III to replace the word "that" with the word "what".

4. In the Section V:

Item 151 of Chapter 21 after the word "origin" to add 1) with the word of "means";

2) in Item 164 of Chapter 22 the word "means" shall be replaced with words "own tool of the capital which means".

 

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