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22.04.2009
Credit-Rating: may bank deposit rating restore population’s confidence?
On April 22 the UNIAN information agency hosted a press-conference featuring
the topic May new Credit-Ratings product bank deposit rating restore populations
confidence in banks?, which was a public presentation of a new financial instrument bank
deposit rating.
Credit-Rating CEO Stanislav Dubko noted in his speech key peculiarities of this rating product. The rating scale is very simple and user-friendly, for the major user of the scale is assumed to be population. As it was earlier in high schools, the rating 5 denotes the highest banks strength in the Ukrainian market, and the bank will unlikely face any difficulties with timely repayment of deposits. The lower is rating the weaker is banks strength, with the lowest rating of 1 indicating banks poor capacity to meet its commitments on deposits. The creation of the new product commenced in early 2009, and now we may assess the outcomes: 75 banks were assigned deposit ratings, though not all of them have given their permission for publication of the ratings.
Several commercial banks have already expressed their opinions regarding the new type of rating. Chairman of Universal Banks Supervisory Board Sergey Stratonov: Today any impartial assessment of a state of financial institution is helpful for decision making. There are a lot of experts, yet the decision is up to the depositor.
According to Irina Skirchuk, Bank Khreschatyks Deputy Chairperson of the Board our bank has positively reacted to evolvement of a new rating product. Despite the fact that this type of rating is a novelty in the national market, there has already been a feedback from the customers. As it is seen from interaction with our customers, this type of rating has a positive perception. This fact exhibits that the population is ready to orientate to analytical information, and to use the rating when deciding on investment objectives.
Yevgenyi Preobrazhenskiy, Head for Bank of Cypruss Department of Treasury Operations said that the creation of a new product, presented by Credit-Rating has been ripe. Today the criteria, with which a customer is used to choose the bank are out-of-date. Such criterion as banks size, its track record etc, are now not quite actual, since there are a lot of large and famous banks facing troubles.
Alexandr Golubev, Energobanks Head for Retail Division noted that today the criteria for choosing the bank are now transforming. Earlier that bank was assessed by its interest rate, expansion of network, and brand recognition, yet now reliability and service quality are primary issues. In the rating procedure Credit-Rating assesses those very criteria, which, in our opinion, should be taken into consideration by every reasonable depositor Mr. Golubev summarized.
Credit-Rating has been operating in the Ukrainian market since 2001 being committed to assigning credit rating by the national scale. In March 2009 Credit-Rating announced that it commenced assignment of bank deposit ratings. Today 75 banks carry bank deposit ratings, with the majority of them (43) demonstrating medium reliability of bank deposits, rated 3. The rating 5 (highest strength) is assigned to 8 banking institutions, and 10 banks bear rating 4 (high strength); 6 banks rating 2 (medium strength); and 8 banks rating 1 (poor strength).
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
