The main risks to the stability of the banking system of Ukraine are to nizkoi operating efficiency of state banks and the poor quality of their assets. This is stated in the overview of the banking sector, prepared by the National Bank of Ukraine (NBU).
“Reform of state-owned banks need to be considerably accelerated,” the NBU.
The regulator proposes to update the management of banks and to establish an independent Supervisory boards.
“Low efficiency of state banks is a key challenge in the banking sector. The largest state-owned banks require significant change in business models and develop long-term strategies of development,” according to the national Bank.
Recall that after the nationalization of the Bank in December 2016, more than half of Ukraine’s banking sector is under state control. The NBU has repeatedly stated that this situation needs to be fixed with privatization, “Private”, as soon as the sale of financial institutions will be possible.
So, for the first quarter, the share of state banks assets increased by 3.8 percentage points (PP) to 55.1%, deposits – by 1.4 percentage points to 60.9%.