Ukrainian banks slowly replenish their capital

Макроэкономика 16.04.2015 In its published statistics on banking sector average ratios as of March 31, 2015, the NBU reported that the regulatory capital adequacy ratio (RCAR) improved from 7.37% to 8.35%. Although higher, this key figure is still below the required minimum of 10%. The main reason for the increase was the 15.5% MoM strengthening of the hryvnia's official exchange rate, which also caused risk-weighted assets to decline by 13.5% MoM. We expect Ukrainian banks to gradually increase their share capital in accordance with the plans previously submitted to the NBU. Formal approval is expected to be reached at the annual shareholders' meeting that traditionally is held in March-April.