The current level of systemic risks to financial stability is moderate, but it may grow next year, the central bank (NBU) has said in its semi-annual financial stability report. Among the main risks, the NBU listed no cooperation with the IMF, slow structural reforms, low efficiency of state-owned banks, and the weak legal system. The NBU said were no significant changes to the macroeconomic environment in H2 2017. High inflation has hindered credit growth, while economic growth has been slow, although it is expected to pick up to 3% and more from next year, said the NBU. In the meantime, the banking sector is back in black, and this trend is expected to continue next year.
Next year, the NBU is going to bring its requirements to banks more into line with Basel III and EU recommendations. It is also going to introduce a new normative, the liquidity coverage ratio, banks will be stress-tested every year, and regulatory capital structure reports will be published. The NBU said its goal is to ensure full transparency as far as operations and the financial shape of banks is concerned.