The National Bank of Ukraine (NBU) is introducing measures aimed at maintaining financial stability in the country and stimulating economic growth during the turbulent period of coronavirus outbreak. In particular, the NBU has taken the following steps to minimise the negative impact of COVID-19 on financial sector:

• the NBU introduced long-term refinancing loans for up to five years for banks in addition to standard short-term refinancing instruments;
• banks stress test is being postponed;
• implementation of buffer capital requirements is delayed, namely a countercyclical capital buffer for all banks, as well as systemic buffer for systemically important banks (banks still must comply with minimum capital requirements);
• the NBU temporarily cancelled fees for processing payments in the System of Electronic Payments of the National Bank of Ukraine (SEP), a state banking payment system that ensures the execution of interbank transfers through accounts opened with the NBU;
• on-site audits of banks and financial institutions for the period of quarantine restrictive measures are suspended;
• the NBU implements constant monitoring of financial sector development trends, in particular indicators of banks' liquidity and credit portfolio quality;
• the NBU allowed banks to develop and offer loan restructuring mechanisms for their corporate and individual clients;
• banks are prohibited from introducing any restrictions on withdrawal of deposits;
• the NBU advised banks to refrain from dividends distribution at least until July 2020.

LINK: https://www.dlapiper.com/en/ukraine/insights/publications/2020/03/the-nbu-adopts-urgent-financial-stability-measures-related-to-covid-19/