NBU governor: Banking sector clean-up triggered loss of confidence, but fully fledged recovery expected from 201718.10.2016 15:56 291
Ukraine's banking sector clean-up has triggered a temporary loss of confidence in the banking system, but this process was inevitable.
Governor of the National Bank of Ukraine (NBU) Valeria Gontareva has stated this in an article for The Banker magazine.
“While inevitable, the cleanup triggered a temporary loss of confidence in the banking system. Nevertheless, the painful process has reshaped the Ukrainian banking system. Only solvent, fully transparent banks have a place in the market,” Gontareva stressed.
As a result of the banking system clean-up, Ukraine's banking sector is now fully transparent, and Ukrainian banks will be fully prepared to increase loan underwriting after a painful transformation period from the next year.
“It would have been inconceivable just two years ago. The key consequence of this reform is that the ultimate beneficial owners of the banks can now be held legally accountable for driving them into insolvency,” Gontareva noted.