The Board of the national Bank estimated how much Ukraine has lost banking crisis 2014-2016
Over the past years the banking system of Ukraine has undergone significant changes.
This is stated in the conclusions of the Council of the NBU “On the activities of the Board of the National Bank of Ukraine on development of the banking system and individual regulations on the issues of banking activities”.
It is noted that this is partly due to the adverse economic environment amid the military conflict and the loss of a significant part of the economic and infrastructural capacity, more than three-fold depreciation of the hryvnia, and, as a consequence, considerable losses, the solvency of businesses and individuals. Thus, it has aggravated the old problems of the domestic banking sector.
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The national Bank explained the strengthening of the hryvnia in 2017.
In turn, a systemic banking crisis 2014-2016 has led to considerable financial losses for the state, business, population, as evidenced by official estimates of the National Bank.
“The direct fiscal costs of Ukraine on overcoming of consequences of crisis of the banking sector has already reached 14% of GDP, which exceeds the related costs incurred during the financial and economic crisis of 2008-09, while total economic losses from the crisis are still 38% of GDP”, – stated in the conclusions of the Council of the NBU.
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In such circumstances, the national Bank resorted to holding a “cleaning” of the banking sector. So, for the period of 2014 – 2016 it was recognized as insolvent 90 banks, the assets of which before the crisis accounted for about a third of the assets of the banking system.
We will remind, the Board of the National Bank of Ukraine called the actions of the regulator in a situation with the nationalization of “PrivatBank”late. The Council of the national Bank noted that the capitalization of “PrivatBank” according to the NBU, the state has already spent the equivalent of nearly 5% of GDP. Given the adopted in the second half of June 2017 a decision on additional capitalization of the Bank in the amount of 38.5 billion hryvnia, the costs of the state can grow to about 7% of GDP.