NBU Urges Banks To Attract Foreign Shareholders.

The National Bank of Ukraine has recommended that commercial banks attract foreign shareholders more actively in order to support their required level of capitalization. Concorde Capital: The rapidly growing assets of Ukraine’s banking segment continuously exert pressure on the banks? capital sufficiency. Share emissions (although regularly used by banks) and retained earnings seem to be insufficient to match rapid increases in assets. Debts on subordinated terms attracted from foreign credit institutions are only a temporary measure to meet NBU’s capital requirements and not easily available for many Ukrainian banks. So the participation of large international banks in the share capital of Ukrainian banks seems to be the most optimal way to handle the problem of undercapitalization.