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Ukrainian Banking System: challenge by the crysis

02.03.2010

The year of 2009 was rather challenging for the banking system and featured overhaul transformations in the national financial sector. The second half of 2009 saw weakening of the regulatory environment and of the NBU’s prudential control (obviously under pressure from international financial organizations).

In the past year the banks’ lending activities were weak. The major efforts were concentrated on work with trouble loans, including their sale and restructuring. At that, this did not help improve assets quality, and many banks experienced troubles with liquidity because of poor quality of investments.

Despite the measures taken for stabilizing financial state of the banks, the key risks (loss of assets and eroded liquidity) remain high for the national banking system.

 

The full article is given in Russian

Viktor Shulik,