The National Bank of Ukraine (NBU) will increase the risk weight for unsecured consumer loans from 125% to 150% from January 1, 2022, announced NBU. It is noted that such changes will help banks create an adequate reserve of capital to cover unexpected losses from the deterioration of portfolio quality of unsecured consumer loans. In addition, the resolution is designed to increase the resilience of creditors to potential crises, promote proper accounting, maximize the benefits, and minimize the risks of working in this segment.
The NBU will raise the risk of consumer credit to 150%.
