The NBU said, what threatens the growth of the share of state banks

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Completely overhaul the business model of banks over a short period is impossible.

The banking sector may threaten systemic risks if the share of state-owned banks will grow in the future.

It warned the Director of the financial stability Department of the national Bank Vitaly vavrischuk, reports “Interfax-Ukraine”.

“Ukraine’s banking sector after the crisis became more concentrated. While the level of concentration can be compared with the indicators of banking systems of the countries of Central and Eastern Europe, it is not critical. But if state-owned banks will continue to grow faster than the market, unable to accumulate additional systemic risks for the entire sector,” said vavrischuk.

If the state banks are constantly growing faster than the market, it means that there are risks they underestimated.

“For us this is an important question, because we see that to date this growth has had much the opposite effects: it reduced the quality of the loan portfolio and higher interest rates on deposits and a decrease in net interest income,” – said the official.

Completely overhaul the business model of banks over a short period is impossible. And the current situation with the banks is not critical.

“We do not see fundamental problems. Even if you sincerely try to do (to reduce the activity on the market), you will be certain to continue inertial processes, which are difficult to analyze,” said vavrischuk.

The government has already approved the development strategy of state-owned banks, one of whose goals is the reduction of their market share.

“We are interested not only the output state of banks’ capital, but the fate of the banks-giants (“PrivatBank”, “Oschadbank” and “Ukreximbank”) on the Ukrainian market as a whole”, – said the representative of the NBU.

Meanwhile, the Verkhovna Rada adopted the law on the work of public banks, in particular regarding the composition of Supervisory boards.

The NBU said, what threatens the growth of the share of state banks

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