Banks holding the vast majority of Ukraine’s banking-sector assets have enough capital to continue lending and remain solvent even in a deep and prolonged crisis, according to the results of the 2026 resilience assessment of banks and the banking system.
The assessment had three stages: external auditors reviewed asset quality and the acceptability of collateral as of January 1, 2026; the findings were extrapolated to the rest of banks’ loan portfolios; and 26 of the largest banks, accounting for more than 90% of sector assets, underwent stress tests. Auditors said no bank needed the portfolio extrapolation in 2026.
The asset-quality review confirmed that banks had correctly assessed credit risk and prudential provisions. Auditors made only minor adjustments, which did not affect capital adequacy ratios at most banks that underwent only the asset-quality review.
Stress tests found that 11 of the 26 banks, representing 10% of sector assets, needed to meet higher capital adequacy requirements. Three banks with 6% of system assets would need additional capital only under the adverse scenario. At the beginning of October, three banks holding 5% of assets had capital adequacy above their required levels.
Banks tested in two consecutive years improved their results. Two institutions no longer need additional capital. The share of sector assets held by banks facing higher capital adequacy requirements fell from 18% to 10%, while the system’s total capital need dropped threefold to about 3% of regulatory capital at the start of 2026.
Banks must reach their approved capital levels by the beginning of 2027 and maintain them until the next resilience assessment. Banks that fail to meet or breach those levels must submit a capitalization or restructuring program. Detailed results for individual banks will be published at the end of December.
Resilience assessments are a standard tool used by regulators to analyze the banking sector and its risks. Ukraine conducted them annually from 2018, with some years omitted because of the coronavirus crisis and the full-scale invasion. The assessment resumed in 2023 after a break, and in 2025 the National Bank returned to the standard procedure involving external auditors.
