RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of January 23, 2018 No. 3

About modification of some regulatory legal acts of the National Bank of Ukraine

List of amending documents

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. No. 351 "About approval of the Regulations on determination by banks of Ukraine of the extent of credit risk on active banking activities" to add Item 5 of the resolution of Board of the National Bank of Ukraine of June 30, 2016 with the new subitem of the following content:

"5) when calculating the extent of credit risk not to apply regulation of the subitem 31 of Item 121 of the Section X of the Regulations on determination of the extent of credit risk.".

2. Approve Changes in the Regulations on determination by banks of Ukraine of the extent of 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 - changes in the Provision) which are applied.

3. To department of methodology (Ivanenko N. V.) after official publication to inform banks of Ukraine information on adoption of this resolution.

4. To impose control over the implementation of this resolution on the vice-chairman of the National Bank of Ukraine Rozhkova K. V.

5. The resolution becomes effective from the date of, its official publication following behind day, except:

paragraphs of the first, fourth and fifth Item 2, the subitem 4 Items 4, Item 11, the paragraph of the fifth subitem of 1 Item 12, subitems 5 and 6 of Item of 13 changes in the Provision which become effective since March 20, 2018;

paragraphs two - the ninth subitem of 1 Item of 7 changes in the Provision which become effective since May 2, 2018;

paragraphs two and the third Item of 2 changes in the Provision which become effective since June 20, 2018. 

Approved by the Resolution of Board of the National Bank of Ukraine of January 23, 2018 No. 3

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

1. In the Section I:

1) in Item 5:

in the subitem of 1 figure and the word "on June 17, 2004 No. 280, registered in the Ministry of Justice of Ukraine on July 26, 2004 at No. 918/9517" to replace with figures and the words "on September 11, 2017 No. 89";

in subitem 4:

word in paragraph one "the discount amount" shall be replaced with words "the amount of discount and/or writedown";

in the paragraph the second to exclude the words "through profits/losses";

in paragraph four of subitem 21 of the word "three last years in a row" shall be replaced with words "three or, in the cases determined by this Provision, five last years in a row";

Paragraph two of Item 8 to state 2) in the following edition:

"The bank uses for forming of the credit documentation (case) the electronic documents conforming to requirements of the Laws of Ukraine "About the digital signature", "About electronic documents and electronic document management", "About consumer crediting" and regulatory legal acts of National Bank on application of the digital signature in bank system, or created with use of the state registers in open entry.";

Item 8-1 in paragraph four - words" (changes of conditions of implementation of credit operation, constituent and registration data of the debtor, its financial condition, etc.)" to exclude 3);

Item 11 to state 4) in the following edition:

"11. National Bank of the banking supervision having the right to require when implementing from bank of reduction of the extent of credit risk on assets/assets in compliance with requirements of this provision.

National the bank has the right to make the decision on inefficiency and inadequacy of management systems credit risk in bank, and also application to bank of adequate corrective actions in case of absence in bank or non-presentations for acquaintance to National Bank on its request or to authorized employees of National Bank when implementing inspection check of intra bank provisions, the credit documentation (case) of the debtor/partner, judgments of bank.";

2. To state Items 29 and 30 of the Section II 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 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 based on own experience of bank at least in five years and in the presence in bank of internal provision / domestic situations according to assets and the calculation of the extent of credit risk for such assets which is approved/approved by National Bank according to procedure which is established by National Bank the separate administrative act.

30. The bank performing banking activity more than three years establishes values of coefficients of LGD, proceeding from type of pledge and level of covering of debt pledge, based on judgment of bank. The values of coefficients of LGD established by bank cannot be smaller, than lower (best) extreme values of the ranges provided by this Provision.

The bank which is new and performs banking activity less than three years establishes values of coefficients of LGD, proceeding from type of pledge and level of covering of debt pledge, based on judgment of bank, but the values of coefficients of LGD established by bank cannot be lower (better), than average values of the ranges provided by this Provision.".

3. In the Section III:

Item 40 to state 1) in the following edition:

"40. The bank determines credit risk by the credits provided to legal entities (except the long-term loans granted to other banks on the terms of subordinated debt by which the size of the regulatory capital according to requirements of the Instruction No. 368), and to physical persons which are considered according to balance sheet accounts of such groups decreases:

1) term deposits (deposits) placed in other banks which are considered on the amortized cost;

2) the loans granted to other banks which are considered on the amortized cost;

3) the loans granted to other banks which are carried at fair value through profits/losses;

4) the loans granted to other banks which are carried at fair value through other comprehensive income;

5) means upon the demand of other banks (active remaining balance);

6) means on demand in other banks;

7) the loans granted on transactions of repo to subjects of managing which are considered on the amortized cost;

8) the loans granted according to discounted bills to subjects of managing which are considered on the amortized cost;

9) the requirements acquired on transactions of factoring with subjects of managing which are considered on the amortized cost;

10) the acquired (created) depreciated credits of subjects of managing which are considered on the amortized cost;

11) the loans in the current activities which are granted to subjects of managing which are considered on the amortized cost;

12) the financial leasing (lease) provided to subjects of managing which is considered on the amortized cost;

13) the mortgage loans granted to subjects of managing which are considered on the amortized cost;

14) the loans granted to public authorities which are considered on the amortized cost;

15) the loans which are granted to local government bodies, considered on the amortized cost;

16) the mortgage loans granted to public authorities which are considered on the amortized cost;

17) mortgage loans which are granted to local government bodies, considered on the amortized cost;

18) the acquired (created) depreciated loans granted to public authorities and local government bodies considered on the amortized cost;

19) the loans for current demands which are granted to physical persons which are considered on the amortized cost;

20) the financial leasing (lease) provided to physical persons, considered on the amortized cost;

21) the loans granted according to discounted bills to physical persons which are considered on the amortized cost;

22) the mortgage loans granted to physical persons which are considered on the amortized cost;

23) the acquired (created) depreciated credits of physical persons considered on the amortized cost;

24) the credits in the current activities of subjects of managing which are carried at fair value through other comprehensive income;

25) the loans granted on transactions of repo to subjects of managing which are carried at fair value through other comprehensive income;

26) the loans granted according to discounted bills to subjects of managing which are carried at fair value through other comprehensive income;

27) the requirements acquired on transactions of factoring with subjects of managing which are carried at fair value through other comprehensive income;

28) financial leasing (lease) of subjects of managing which is carried at fair value through other comprehensive income;

29) mortgage loans of subjects of managing which are carried at fair value through other comprehensive income;

30) the credits to public authorities which are carried at fair value through other comprehensive income;

31) the credits to local government bodies carried at fair value through other comprehensive income;

32) the loans granted to public authorities and local self-government, carried at fair value through profits/losses;

33) the loans granted to subjects of managing which are carried at fair value through profits/losses;

34) the loans granted to physical persons which are carried at fair value through other comprehensive income;

35) the financial leasing (lease) provided to physical persons, carried at fair value through other comprehensive income;

36) the loans granted according to discounted bills to physical persons which are carried at fair value through other comprehensive income;

37) the mortgage loans granted to physical persons which are carried at fair value through other comprehensive income;

38) the loans granted to physical persons which are carried at fair value through profits/losses;

39) means upon the demand of subjects of managing (active remaining balance);

40) means upon the demand of physical persons (active remaining balance);

41) means of non-bank financial institutions (active remaining balance).";

Item 41 to add 2) with the new subitem of the following content:

"3) means in Central Banks of the countries having the investment rating on the international scale confirmed with the agency (company) Standard & Poor" to s, or the similar rating of other leading world rating agencies (companies) determined by this Provision.".

4. In the Section IV:

Paragraph two of the subitem 1 of Item 48 to state 1) in the following edition:

"The annual financial reporting the debtor/consolidated financial statements of group (in case of the debtor's belonging to group of legal entities under general control / the connected partners) shall be confirmed by the auditor whose report contains not changed opinion / the modified opinion with clauses if the debtor - the legal entity is resident and cumulative exposure under risk (EAD) on all assets of such debtor constitutes 200000 thousand UAH or more.";

Paragraph one of Item 55 to state 2) in the following edition:

"55. The financial reporting which moves in bank the debtor - the legal entity who is resident shall be signed by the head and the chief accountant (in the presence of such position).";

3) in the subitem 1 of Item 63 of the word "has certainly positive or conditionally positive conclusion of the audit report" shall be replaced with words "the report of the auditor contains not changed opinion / the modified opinion with clauses";

Item 66 to state 4) in the following edition:

"66. The bank determines value of coefficient of probability of default:

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info