Ukraine’s banking system must improve own efficiency – economy minister

The development of financial intermediation is an important element in stimulating economic growth.

That’s according to First Deputy Prime Minister, Minister for Economy of Ukraine Oleksiy Liubchenko who penned an op-ed entitled "Key tasks for Ukraine’s economic growth," published by LB.ua, Ukrinform reports referring to the economy ministry’s press service.

"The banking system, as an institution of financial intermediation, should qualitatively improve the efficiency of its activities, ensure that credit resources are available to economic entities, taking into account the level of market development, the solvency of players involved, and shifts in aggregate demand," said Liubchenko.

Among the key measures to develop financial intermediation, the first vice prime minister noted the development of investment refinancing of bank loans, easing of credit risk assessment requirements, modernization of monetary policy, including through a temporary shift of focus from stabilizing inflation to supporting economy growth.

Also, it’s the development of non-banking financial markets as an alternative source of financing investment projects and improving the efficiency of supervisory boards at state-owned banks in the context of developing their investment specialization.

The Verkhovna Rada of Ukraine appointed Head of the State Tax Service of Ukraine Oleksiy Liubchenko First Vice Prime Minister, Minister for Economic Development, Trade and Agriculture on May 20, 2021.

Liubchenko had headed the State Tax Service since April 29, 2020.

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