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01.07.2010
Ukraine’s Banking System. Survey of 1Q2010
Starting
from July 2009 the banking sector has been slowly recovering after a sharp downturn. In
1Q2010 the positive trend in banks’ resources retained, with the loans raised from the
National Bank and parent companies being gradually substituted with funds from the
domestic market. In the first quarter the banks augmented their stocks (some of them
required it urgently), and rather cautious lending and investment policy prompted rising
of liquidity. A part of accumulated funds has been aimed at repayment of the National
Bank’s and foreign lenders’ loans (net foreign obligations decreased over the quarter by
UAH12.23bn). Due to changes in operating and regulatory environment, the banks limited
transactions in foreign currencies (which respectively affected interest rates) and
provided loans mainly in the national currency to legal entities (including those aimed
at restructuring their outstanding debts).
