AUB: Over 2 years Ukrainian banks will not have time to build up the required regulatory capital

The Association of Ukrainian Banks estimates the time necessary to carry out banks to the increasing demands of regulatory capital in 3 years (no earlier than 2014). About this FINANCE.UA the press service of AUB. The Association believes that the norm of the requirement for banks to build the regulatory capital from 75 million hryvnia to 120 million hryvnia may be included in the bill N0884, registered in the parliament on Nov. 23, 2007. In AUB notes that the program of economic reforms in Ukraine for 2010 - 2014 years. Approved by the President of Ukraine Viktor Yanukovych, also provides for an increase no less than twice the average level of banks' own capital, and a deadline to meet - up to 2014 according to the Association, In introducing the second reading in Parliament a bill N0884 will contain the rate that the authorized capital of banks should be 120 million hryvnia, and existing banks are required within 2 years of lead the size of your UV in line with this norm. The Association also noted that to meet these requirements, banks in over 2 years should increase the amount of the share capital by an average of 67,2%, which requires 3.9 billion UAH of additional investment. This is despite the fact - noted in AUB - that Ukraine had not yet overcome the consequences of a deep economic crisis, 2008-2009: GDP growth for 2010 amounted to only 4% loss on the banking system accounted for more than 13 billion USD, continues to be high levels of loss-making enterprises. Under these conditions, there simply is not sufficient investment resources to meet the said requirements. "Thus, the introduction of this requirement is discriminatory for Ukrainian banks and the creation of artificial insurmountable obstacles in their work," - said President Aleksander Sugonyako AUB. Source: Finance.ua