ASSESSMENT OF THE EQUITY STRUCTURE OF UKRAINIAN BANKS

Abstract

The article considers equity as an element of bank capital, which, according to international and national standards, is divided into core and additional. The total equity capital of the banking sector of Ukraine is analyzed in terms of fixed and additional capital. The analysis of the state of fixed capital in terms of components demonstrates the instability of dynamics associated with uncertainty. The structure of fixed capital has not undergone significant changes: the share of actually paid-up registered authorized capital is naturally dominant. Core capital is the basis of bank sustainability, but despite a significant capital buffer at the system level, individual banks remain vulnerable to risks, mainly due to potential additional credit losses from the war. An analysis of the growth rates of the components of additional capital of Ukrainian banks confirms the unstable nature and protective function of additional capital. The structure of the components of additional capital is dominated by the estimated profit of the current year and retained earnings, which resulted from the predominance of transactions with government securities and NBU certificates of deposit. Profits increased sharply in 2022-2023. Given the limited resources of the state budget that can be used to finance military needs, it was decided to introduce a tax on "excess profits" for banks. The article reviews the international experience of introducing the corporate profit tax and its implementation in domestic practice. The author analyzes the main regulatory changes in the capital structure of domestic banks. In particular, it is envisaged that a new (three-tier) capital structure will be introduced, which will include the following changes: the procedure for calculating Tier 1 capital, contributions to Tier 1 capital, Tier 2 capital, their components and deductions therefrom; requirements for the components of capital that make up capital; the procedure and conditions for obtaining permission (approval) from the NBU to include certain components in the capital.