Okeksadr Pysaruk, deputy governor of the National Bank of Ukraine, stressed the need for revamping the banking system during a meeting Monday with journalists and banking representatives.
Stress testing of nine banks showed Ukraine hryvnia (UAH) 56 billion in additional capital was needed and estimates of future stress tests indicate a need for an additional UAH 10 billion in recapitalization.
Banking representatives cited a lack of protection for creditor's interests and said delays in addressing this will prevent foreign investments into the Ukrainian economy. They also agreed that the purging of the entire system would benefit the entire country.
The National Bank of Ukraine's plan of action includes removing problematic banks and those not following financial monitoring laws, liquidity support and provisions for refinancing loans.
With these measures in place, Pysaruk said the banking system would improve within one or two years.