Development and structure of the banking sector in Ukraine

Alicia Dereza

Economic performance of Ukraine56th economy in the worldGDP per capita $ 7600Growth of GDP 5.2%Debt 93.5% of GDPAverage salary: 250 euros/monthUnemployment rate 8.5%Inflation rate 3.7%Export-oriented (50% of GDP)Budget revenues $ 53.07 billion

expenditures $59.58 billion

Banks of UkraineThe most popular for people - Ukrainian

private bankThe most popular for businessmen –

Reiffeisen Bank Aval, Unicradit Bank etc.

Get more trustCreative marketingInterest rate for saving accounts: 13-30% per

yearDifferent saving accounts

The Structure of Banking System of UkraineTwo-tier :the central bank - The National Bank of Ukraine

carries out monetary policy and provides stability of the national monetary unit

determines exchange rate of the national currencyrefinances commercial banks providing for their

liquidity etc.the commercial banks of various types and forms

performs a wide range of services of credit, insurance and payment character, and also carries out various financial functions concerning any enterprise in economics for the purpose of profit earning

The Structure of Banking System of Ukraine 2012-2013

Structure of banking sector01.01.

1201.03.2

013

Amount of registered banks 198 177

Amount of functioning banks 176 176

From them: with foreign capital 53 53Including those with 100% foreign capital 22 22Share of foreign capital in banks, % 41,9 39,5

Bank on the liquidation stage 18 24Banks with temporary administration 4 1

The Structure of Banking System of Ukraine

The Structure of Banking System of Ukraine

Basic trends for any scenarios of the banking sector developmentreaching synergies when working with

different clients segments;focusing on clients with average and above

the average level of incodeveloping remote systems of customer

assistance;increasing quality of risk management;expanding distribution channels.

Macroeconomic policy: A flexible exchange rate system and the gradual introduction of inflation targeting are key elements in this respect.

Credit growth: In a situation where credit is still scarce, the authorities should refrain from using instruments that limit credit further.

Liability side: Support current plans to cancel the right of depositors to withdraw time deposits any time, as this will mitigate liquidity risks and facilitate long-term lending.

Capital: An adequate capitalization of the sector is a key element in the rehabilitation process.

Rights of lenders and borrowers: The protection of lenders’ rights is crucial for fostering sustainable lending. The authorities need to improve the legal and judicial environment.

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