Another 37 banks in Ukraine are in need of recapitalization.

In Ukraine, 37 banks have to increase the share capital to 11 July 2017 until at least UAH 200 million. About it reports a press-service of the National Bank of Ukraine (NBU).

The NBU explained that such banks, primarily aimed adopted yesterday by the Verkhovna Rada Law “On the facilitation of the capitalization and restructuring of banks”, although you can use them absolutely all the banking institutions.

Now the requirement to increase capital are performed at the expense of additional contributions of shareholders, however, with the adoption of the law opens the possibility to consolidate the banking sector through merger of banks.

Reorganization of banks will be possible under the shortened procedure, which will be reduced from six years to three or four months.

The law also gives banks the opportunity to refuse a banking license without liquidation of a legal entity and to continue as a non-banking financial sector, having done the obligations to depositors and other creditors.

We will remind, on 23 March, the Parliament adopted the law on the facilitation of the capitalization and restructuring of banks.