State’s share in state-owned banks expected to decrease to 25% by 2025

State’s share in state-owned banks expected to decrease to 25% by 2025

Ukrinform
The Finance Ministry of Ukraine expects that the share of the state in state-owned banks will decrease to 25% by 2025.

The Finance Ministry’s press service wrote about this on its Facebook page.

According to the updated Principles for Strategic Reform of the Public Banking Sector (Strategic Principles) developed by the Finance Ministry in cooperation with international partners, which was approved by the Government of Ukraine on September 2, 2020, the share of non-performing assets in public sector banks is expected to decrease to less than 20% of total assets; the state's share in state-owned banks is expected to decrease to 25% by 2025.

The main priorities of the Principles include: implementation of strategies for each public sector bank, protection and support of corporate governance reform with a majority of independent members of the supervisory board, ensuring the necessary level of accountability; reduction of the share of non-performing assets on the balance sheets; reducing the exposure of the state and state-owned enterprises in public sector banks.

At present four state-owned banks operate in the Ukrainian banking sector - JSC Oschadbank, JSC Ukreximbank, JSC CB PrivatBank and JSB Ukrgasbank.

According to the Law of Ukraine "On Banks and Banking", the sole shareholder of a state bank is the state. The functions of managing corporate rights of the state in in the state-owned bank are performed by the Cabinet of Ministers of Ukraine, which also performs the functions of the highest governing body of the state bank. JSC Oschadbank, JSC Ukreximbank, JSC CB PrivatBank are 100% owned by the state, JSC Ukrgasbank - by 94.94%.

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