Trends in the banking system of Ukraine in 2014

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National bank of Ukraine

Nobody will argue that the banking sector of the country is the most important factor of financial and therefore economical stability of the state. Banks are now grew into almost independent system of managing the vital attribute of economical life: money. So they are now virtually as powerful as government or military forces and no one can undervalue the role of banking system in the life of any country and in the World economics generally. So let`s speak about trends of Ukrainian banks in 2014, investment climate and whether or not to make business with Ukrainian banking system. 

 

National bank of Ukraine

So, annual growth of bank assets amounted to 140 billion UAH, And on January 1, 2014 the total assets of banks amounted to 1.410 trillion UAH. Profit of the banking system of Ukraine in 2013 amounted to 2.5 billion UAH.

 

In 2013, the growth of corporate loans grew 3 times higher than in 2012, or 90 billion UAH. Total assets of the banks increased by 11%, lending to legal entities by 15%. Despite the decline in the industry, the banking system has supported the real branches of Ukrainian economy.

 

By the end of 2013 was marked an improvement of the loan portfolio quality of the banking system. Arrears in the portfolios of Ukrainian banks continue to decline and at the time are less than 8%, adversely classified dept is less than 14%.

Ukrainian banks, credit portfolio, paying ability

Ukrainian banks revenues for the 1st quarter of 2014 increased by 32.8% compared with the corresponding period in 2013 to 50.5 billion UAH, expenses – by 50.4% to 52.5 billion UAH.

 

Rating of the most reliable banks in Ukraine has been based on official statistics of Ukrainian banks, provided by the National Bank of Ukraine in 2014.

 

The rankings of the largest Ukrainian banks take into account the Bank's ability to return deposits without delay if it would have financial problems or problems to repay loans and rising indebtedness of clients and the level of shareholder and the state support.

 

For stable operation of the bank must have sufficient amount of capital and liquidity. To determine the capital adequacy standard exists regulatory capital adequacy which must be not less than 10%, otherwise the NBU (National Bank of Ukraine) has every right to introduce temporary administration.

 

Among the largest banks in Ukraine there are a few banks that standard regulatory capital is at a level close to the minimum value. Events such as the devaluation of the hryvnia, and the deterioration of the loan portfolio led to losses, and dramatically reduce the bank's regulatory capital.

NBU relates to the group of the largest banks those which have total assets exceed 20 billion UAH.

Raiffeisen bank Aval, foreign capital bank, Ukrainian economics

A number of banks whose capital adequacy ratio is low, demand an immediate infusion of capital to survive after the incurred losses. The most vulnerable are the "VAB Bank", "Imeksbank", "Nadra Bank",  Bank "Finance and Credit" and "Financial Initiative". Most other banks despite their debt by refinancing or a low level of capital can expect on support from parent banks or its large portfolio of government bonds, or foreign currency deposits in Western banks.

Ukraine's largest state-owned banks: Oschadbank, Ukreximbank and UGB(Ukrgasbank).

privatbank, Ukrainian banking system, biggest bank

In the ranking of commercial banks offering their services on the Ukrainian financial market, leading positions are occupied: Raiffeisen Bank Aval, Ukrsocbank (UniCredit Bank), Privatbank, Credit Agricole, PUMB (FUIB).

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