PrivatBank has enough liquidity to upkeep mandatory reserves

The largest bank in Ukraine – PrivatBank (Dnipropetrovsk) – has implemented the additional capitalization program and has enough liquidity to maintain mandatory reserves at the required level, Governor of the National Bank of Ukraine (NBU) Valeriya Gontareva said at a year-end press conference in Kyiv on Tuesday.

"PrivatBank has fulfilled the whole additional capitalization program foreseen after a stress test of 2014. In 2015, the bank injected UAH 8.2 billion into its capital after the stress test of last year. Moreover, now the bank has around UAH 4 billion on the correspondent account and around UAH 9 billion in the cash department. This is even more than required to support mandatory reserves," she said.

As reported, PrivatBank in November increased its regulatory capital by $220 million and fulfilled its recapitalization program following the completion of the transaction on extending the subordinated debt on international markets.

The completion of the transaction allowed PrivatBank to increase capitalization and capital adequacy to 11.87% at the minimum level established by the National Bank, being 10%, the bank said.

PrivatBank was founded in 1992. As of July 7, its largest shareholders were Hennadiy Boholiubov and Ihor Kolomoisky with shares of 45.3182% each.

The bank was the largest bank among 123 banks operating in the country on October 1, 2015 by total assets (UAH 241.809 billion), according to the NBU.