Minimum Leverage Ratio Requirement Introduced for Banks and Banking Groups

The National Bank of Ukraine (the NBU) has taken a significant step toward aligning its banking regulatory framework with Basel III pillars by establishing, for the first time, a minimum leverage ratio requirement for banks and banking groups. These changes are formalized in the NBU Board Resolution No. 68 dated June 23, 2025, which amends several regulatory acts concerning the activities of banks and banking groups. 

Key highlights:

• Minimum Leverage Ratio Set at 3%: Effective from September 1, 2025, for banks and from April 1, 2026, for banking groups. This threshold aligns with standards provided for by Basel Committee on Banking Supervision and the EU Capital Requirements Regulation; and 
• Extended Testing Period: To facilitate a smooth transition, the NBU has extended the testing period for banks to calculate the leverage ratio until the end of August 2025, requiring daily calculations during this phase. 

The leverage ratio serves as an additional capital adequacy metric, independent of risk-weighted assets. Its implementation aims to enhance the financial resilience of the banking sector and ensure greater regulatory equivalence with EU norms. The ratio has been calculated by the banks and the banking groups in the test mode since early 2025 and, according to the NBU, approximately 40% of Ukrainian banks may be constrained by this new requirement, underscoring its significance for the capital planning and potential for consolidation of the market.