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13.11.2008
Credit-Rating: Impact of crisis on small banks to be deferred
Credit-Rating subscribes to the opinion that the global financial crisis negatively affects the banking system, still being deferred for small banks. The low segmentation of the clientele of small banks and loyalty of some customers, which funds often contribute to over a half of their liabilities, which as a rule, are placed in loans granted to a limited number of companies all of that mitigates current risks, which may aggravate under deepened crisis in real economy.
According to Viktor Shulik, Credit-Rating`s leading financial analyst `the primary problem for small banks in the nearest future may be represented by deteriorated quality of revenue generating assets, which will be prompted by eroded solvency of borrowers in certain economy sectors`.
In-depth analysis of performance of banking institutions in 3Q2008
Credit-Rating furnishes services on assignment and revision of credit ratings to 73 Ukrainian banks. The majority of the ratings pertain to investment grade carrying stable outlooks. As of Oct. 27, 2008 Credit-Rating maintains 67 ratings assigned to banking institutions and 50 ratings assigned to their debt obligations, with 82% of the ratings pertaining to investment grade of the rating scale.
For more information, please contact:
Information and Communication Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.ua
