incentive to review approaches to risk management in the banking sector. Thus, the
decision was made to start the implementation of Basel III, the final transition to which
in the EU is expected in 2019. The major stages of the Basel III implementation by the
Basel Committee on Banking Supervision are presented in Table 1.
The development of directives and recommendations is carried out in
collaboration with the central banks of the member countries and regulatory authorities
around the world, and therefore they are used not only by the Basel Committee
members, but also in other countries. So, actions on implementing the
recommendations of Basel III were conducted in more than 100 countries. In the
European Union, the recommendations of the Basel Committee are used for the mutual
integration of banking systems of the EU members and EU associated members,
including Ukraine.
Table 1. Main stages of Basel III implementation 2013-2019, %
Stages
2013
2014
2015
2016
2017
2018
2019
Capi
tal
Leverage Ratio
Parallel run 1 Jan 2013-1 Jan
2017
Disclosure starts 1 Jan 2015
Migration
to
Pillar 1
Minimum Common Equity
Capital Ratio
3,5
4,0
4,5
4,5
4,5
4,5
4,5
Capital Conservation
Buffer
0,625
1,25
1, 875
2,5
Minimum common equity
plus capital conservation
buffer
3,5
4,0
4,5
5,125
5,75
6,375
7,0
Phase-in of deductions
from CET1
20
40
60
80
100
100
Minimum Tier 1 Capital
4,5
5,5
6.0
6.0
Minimum Total Capital
8,0
8,0
Minimum Total Capital
plus conservation buffer
8,0
8,0
8,625
9,25
9,875
10,5
Capital instruments that no
longer qualify as
non-core Tier 1 capital or
Tier 2 capital
Phased out over 10-year horizon beginning 2013
L
iq
u
id
ity
Liquidity coverage ratio –
minimum requirement
60
70
80
90
100
Net stable funding ratio
Introduce
minimum
standard
Source: [9]
Continuing to apply the Integrated Program for the Development of the Financial
Sector of Ukraine until 2020, the National Bank of Ukraine approved a new prudential
requirement for Ukrainian banks on February 15, 2018, namely, the liquidity coverage
ratio (LCR).
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