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12.06.2009
Credit-Rating: Trends in Ukraine`s banking sector to retain
The deepening economic crisis has prompted adversities in the banking sector, erosion in credibility of a number of banks and almost full halt in lending. The banks` solvency has significantly been maintained by the regulator, albeit there have been set no conditions for recovery in the sector. Basing on these facts, we should note that today there are no objective preconditions for resumption in lending activities. The banks require significant capital injections in order to restore their primary functions. The retaining today`s trends may lead to drastic changes in the system, including leavings, liquidations and acquisitions.
Review of Ukraine`s banking sector in 1Q2009 (russian version)
Note: As at Apr. 1, 2009 there have been issued licenses to 185 institutions, the majority of which registered in capital region. Starting from early 2009 the National Bank has registered 3 banks. Apart of that, Ukraine hosts 33 representative offices of foreign banks. The number of banks with foreign capital remained unchanged at 52.
The number of banks in the phase of liquidation was recorded at 12 as at Apr. 1, 2009, with 13 banks introduced temporary administrations of the National Bank of Ukraine. The number of banks by groups remained unchanged. The share of banks of 1 st group (18 institutions) in the overall system`s assets is 68.3%, with that of the 2 nd group being at 16.1%. The shares of banks from the 3 rd and 4 th groups remain insignificant.
Credit-Rating maintains 54 bank deposit ratings. The majority of banks (33) demonstrate average reliability of deposits, bearing rating `3`. The rating `5` (the highest possible) is assigned to 8 institutions, with the banks assigned `4` (high reliability) increased to 11. The reliability of bank deposits of 2 banks remain below average, carrying rating `2` (low reliability).
Credit-Rating also maintains 86 credit ratings assigned to banking institutions and to its debt issues, with 33 of the ratings carrying negative outlooks, 11 placed on Rating Watch List, 3 ratings carrying positive outlook, and 2 ratings bearing developing outlook.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.ua
Denis Rudenko
DRudenko@credit-rating.ua
