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Ukraine banks seek stabilisation - YesBusiness comments for UBI
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11 October 2010
This year has seen the Ukrainian banking system stabilise and several banks have resumed lending. But their current priority is car credit, while mortgages remain scarce, and interest rates are so high that few borrowers can afford to take advantage of the increased availability of loans reports UBI’s Aleksandra Nekrashchuk.
“The situation in the banking sector continues to improve and liquidity is back to normal, but banks still need time to clean their books of soured assets,” comments Nikita Mykhalichenko, analyst at investment company Concorde Capital. Financial institutions are once again being trusted by the public to handle their finances, Mr. Oleksandr Vasilenko, financial director of consulting company YesBusiness LLC, adds that the volume of deposits is about UAH 360 bn, which is 14% up on January and February. “Since the beginning of the year the deposit rate has reduced 2% to 3% and is expected to fall a further 1% to 2% by the end of the year,” said Vasilenko.
Vasilenko also adds that there are not expected to be any changes in ranking among the top 20 largest banks in 2010. “It is possible that in 2011 there will be some systemic changes in the sector. Western investors expect profitability to return to the levels before the crisis but they acknowledge that the risks remain high. Whereas Russian investors consider Ukraine as a political and economic partner and that is why they may buy Ukraine banks,” said Vasilenko.
Read the full article here:
Ukraine Business Insight
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