The National Bank of Ukraine will begin diagnostics of banks in April.

This year there will be two stages: an asset quality assessment and sustainability of business model analysis, Deputy Head of the NBU Kateryna Rozhkova said.

She clarified that the procedure’s primary purpose is to assess the real impact of the war on capital. The Central Bank will carry out these diagnostics independently and plans to complete them by the end of the year. The NBU expects most banks to restore their capital with income from core activities and credit restructuring. But the final conclusions will be made only at the end of the year, explained Rozhkova.

In addition, the following steps are planned by the National Bank: strategy development for the settlement of wartime NPLs, a map for the return to “peaceful” regulations, risk-oriented supervision, and the continuation of work to implement the requirements of European banking legislation in Ukraine.