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On July 8, 2026, the National Bank of Ukraine (NBU) updated the procedures for assessing the resilience of individual banks and the banking system. The NBU aligned the assessment process with a new framework for establishing enhanced prudential requirements for banks following Supervisory Review and Evaluation Process (SREP) outcomes. The NBU retained the three-stage assessment approach: asset quality reviews (AQR) conducted by independent auditors for all banks; extrapolation of AQR results across the banking system where necessary; and stress testing for the largest banks under baseline and adverse macroeconomic scenarios. For banks assessed under only two stages, the NBU eliminated requirements to determine necessary capital adequacy ratios based on resilience assessment results. Instead, these results directly inform enhanced prudential requirements determined through SREP. For banks undergoing all three assessment stages, the NBU sets required capital adequacy ratios at the higher of two values: the necessary level determined from stress testing results, or the overall capital requirement (OCR) from SREP outcomes. The NBU optimised the assessment process by requiring banks to achieve necessary capital adequacy levels by the end of the year in which the assessment occurs and maintain them through the end of the following year. Banks must only develop and implement capitalisation or restructuring programmes if they fail to meet required levels by year-end or subsequently breach them. To align with European approaches, the updated procedures require determining necessary leverage ratio (LR) levels from resilience assessments, though implementation of this requirement has been deferred. The NBU Board adopted these changes through Resolution 77 on July 8, 2026, effective from July 9, 2026. REFERENCES: National Bank of Ukraine. Resolution 77 of July 8, 2026. Available at: https://www.nbu.ua