The National Bank of Ukraine (NBU) has developed a new methodology for assessing minimum capital requirements to cover market risk based on the recommendations of the Basel Committee on Banking Supervision. In the context of the implementation of the market risk methodology, the NBU also envisages the introduction of an Internal Capital Adequacy Assessment Process (ICAAP) for banks. The NBU emphasises that these requirements are an important step towards full integration into the European Union.

The NBU press service quoted Pervin Dadashova, director of the Financial Stability Department, as saying this: "The NBU has already developed a methodology for assessing the minimum capital requirements to cover market risk, based on the recommendations of the Basel Committee on Banking Supervision, and expects to implement it in 2024."

It is noted that under the current rules, banks are required to cover only credit, currency and partially operational risks with capital. The test period, which will begin in the near future, will determine the amount of market risk capital coverage and its timing.

At the same time, the NBU emphasises the need for banks to assess risks and determine the adequacy of capital to cover them as part of their budget preparation for the next year. This will allow them to adjust their business model in terms of risk appetite, if necessary.