Pivdenny Bank recognised again as a systemically important bank of Ukraine

The National Bank has carried out an annual review of the list of systemically important banks in accordance with the updated methodology, taking into account the recommendations of the European Supervisory Authority and international practices. According to the decision of the NBU Board of 3 March 2020, 14 systemically important banks were identified. Pivdenny Bank has been included in the category of systemically important banks since 2019.

For systemically important banks, there are certain heightened requirements to provide an additional margin of safety. At the same time, the status of systemically important bank does not guarantee banks special conditions for maintaining liquidity in times of stress as this is granted on a system-wide basis.

Systemically important banks, in addition to the regulatory capital adequacy value, should form a systemic importance buffer that will take effect from 1 January 2021, and will depend on the value of the systemic importance of the bank. For Pivdenny Bank, it will be 1 %.

According to the 2019 results, Pivdenny Bank confidently complies with all NBU economic standards. Thus, the regulatory capital adequacy ratio H2 is met with a sufficient margin, which allows the bank to have a solid foundation for further growth. The H2 value as of 31 December 2019 was 14.95 % (with the required minimum of 10 %).

The credit risk ratios that characterise the concentration of a bank's active transactions are also consistently maintained. This demonstrates the bank's prudent credit risk management policies and low reliance on large borrowers. As of 31 December 2019, the value of the H9 ratio, which shows the ratio of insider debt to regulatory capital, was only 9.0 % (far below the required maximum of 25 %).