According to the information posted on the official website of the National Bank of Ukraine in 2014 the banking sector increased its profit by 210.200.000 hryvnia which is 24.5% more than in 2013. Costs reached the level of 263.200.000 hryvnia (57.2%).
NBU concludes, that the negative financial results of the banking sector in Ukraine in 2014 occurred due to increase in allocations to reserves for potential losses from active operations.
40% of the losses were formed by banks which are classified as insolvent, and in which the temporary administration has entered. It is important to note the fact, that the basic banking operations remained profitable.
Refinancing in the amount of 101.000.000 hryvnia was received by 34 banks.
The most reliable banks of Ukraine 2014-2015 (according to the NBU)
|№||Bank||Form of ownership|
|3||Credit Agricole Bank||private|
|5||Raiffeisen Bank Aval||private|
The largest banks by asset size (thousand UAH.) (according to the NBU)
|1||Privatbank||201 900 469||150 422 913||13 174 777|
|2||Ukreximbank||131 527 353||51 088 244||525 152|
|3||Oschadbank||113 681 582||64 799 635||111 082|
|4||Delta Bank||63 104 973||46 234 276||698 571|
|5||Prominvestbank||51 578 338||37 095 781||651 515|
|6||Ukrsotsbank||44 960 154||30 831 650||181 225|
|7||Raiffeisen Bank Aval||44 675 795||28 447 665||552 034|
|8||Sberbank Rossii||43 379 430||34 691 748||127 249|
|9||PUMB||37 945 867||24 419 083||114 041|
|10||Alfa-Bank||37 381 829||23 485 371||1 564 827|
According to the Ministry of Finance of Ukraine as at 09.02.2015 there are 38 problematic banks. (http://minfin.com.ua/banks/problem/)
The International Monetary Fund has provided some basic criteria to improve and stabilize the banking sector in Ukraine:
– monitoring and support of liquidity;
– review and improvement of regulatory policy and banking supervision;
– restructuring and recapitalization of banks;
– assessment of the financial stability of banks;
-removal of restrictions and increase of the ability of banks to address the issue of bad loans.
According to the decision of the NBU Board of 01.12.2014 №758 «On settlement of the situation in the monetary and foreign exchange markets of Ukraine» restrictions on foreign currency transactions until 03.03.2015 were extended. Among the restrictions on foreign investment issues, it is necessary to highlight the ban on the withdrawal of currency from Ukraine, received from the sale of corporate rights of Ukrainian companies or securities of Ukrainian issuers outside the stock exchange by foreign investor, as well as currency received in the form of dividends. Regulator is using administrative methods in order to compensate substantial decline in foreign investments.
To summarize, in general, the banking sector has undergone optimization: new legislation came into force, policy of the central regulator (NBU) has become more rigid, the IMF provides active financial injections into the banking system of Ukraine.