NBU, EBRD discuss Ukraine’s financial sector situation

NBU, EBRD discuss Ukraine’s financial sector situation

Ukrinform
The National Bank together with the European Bank for Reconstruction and Development discussed a number of issues, including the state of the financial sector of Ukraine, the results of the latest assessment of the banking system stability and the transformation of the non-banking sector.

That’s according to a report by the NBU press service released after the meeting of Governor Andriy Pyshnyi and First Deputy Governor Kateryna Rozhkova with the EBRD delegation.

Francis Malige, Managing Director, Financial Institutions, and Matteo Patrone, Managing Director for Eastern Europe and the Caucasus, introduced their colleague Artur Pogosyan, who recently assumed the position of Deputy Chairman of the EBRD in Ukraine, Financial Institutions.

"The parties discussed a number of issues, including the state of the financial sector of Ukraine, the current results of the assessment of the stability of the banking system, the transformation of the non-banking sector, the creation of a mechanism for insuring war-related and political risks, andnew directions of cooperation, including the establishment of an inclusive banking system," the report reads.

Read also: Ukraine facing no default despite large public debt - financial expert

In April, the NBU launched an independent assessment of the banking system stability. So far, 12 banks out of 20 planned have passed the asset quality assessment.

"So far, there are no surprises, the loss estimates are close to expectations," Pishnyi emphasized.

Based on this year's sustainability assessment, a concept for restoring the capital of the banking sector will be drafted. As soon as the security situation permits in 2024, the NBU will conduct an assessment with the participation of independent experts with the EBRD support.

In turn, the head of the National Bank of Ukraine noted that banks should form a strong interaction with the veteran community and make the construction of an inclusive financial system part of their mission. He talked about the already existing developments in this regard, voiced options for possible solutions, and thanked his counterparts from the EBRD for the initiative in financial inclusion.

During the meeting, the parties also discussed such important issues as updating the development strategy of state-owned banks, formation and operation of supervisory boards, as well as insurance of military and political risks. Regarding the latter issue, the National Bank is in contact with international partners, in particular with the World Bank. A certain model of the war-related risk insurance mechanism has already been formed, which the NBU will present to other government bodies for discussion.

As reported, the European Bank for Reconstruction and Development (EBRD) has achieved its goal of investing EUR3 billion in the real sector of Ukraine's economy during 2022-2023 in order to limit the impact of the war unleashed by Russia.

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