Banks with Western capital will continue leaving Ukrainian market in 2013 - expert
2013-01-21 12:56:34
This trend in Ukraine's banking sector development was noted by Executive Director of the Independent Association of Ukrainian Banks Serhiy Mamedov in a commentary to UKRINFORM.
"In 2013, it will be possible to observe some interesting trends in the Ukrainian market. First, banks with Western capital will continue to go. Who goes and when will depend only on the ability to get sold at as much as possible and to minimize losses," Mamedov said.
In his view, even if foreign banks do not leave the Ukrainian market completely, they will reduce their yet powerful share in banking assets. "The reason is the complexity with their parent companies in connection with the deepening of the debt and financial crisis in the European Union," the expert said.
Mamedov also did not rule out a slowdown in the development of Ukraine's banking system. "Secondly, a slowdown in Ukraine's banking system growth is possible. Admittedly, the system itself is not planning a significant growth either," the expert said.
He explained that at the moment there is a lack of investment and resources, as well as a high cost of liabilities (deposits) and a large proportion of problem assets. "This can of worms, which is very difficult to untangle, will put pressure on banks and hinder the development of our banking system," Mamedov said.
As UKRINFORM reported, early this year the capital of banks was UAH 169.8 billion, or 15.1% of the banks' liabilities. Paid-in authorized capital of banks is UAH 175.4 billion. Banks' liabilities as of January 1, 2013 amounted to UAH 957.4 billion. The main components of the liabilities are individuals' funds - UAH 364.7 billion, or 38.1%, the means of economic entities - UAH 202.6 billion, or 21.2%, interbank loans and deposits - 119.3 billion UAH, or 12.5%.
Among individuals' funds, UAH 289.5 billion (79.4%) are term deposits, and UAH 75.2 billion (20.6%) on-demand deposits.
Assets of banks as of January 1, 2013 amounted to UAH 1 trillion 127.3 million. In the structure of total assets of banks, 63.7% are loans granted, 8.2% investments in securities, 5.1% cash, precious metals and balances with the National Bank of Ukraine, 7.9% correspondent accounts opened in other banks, etc. As of January 1, 2013 licenses of the National Bank of Ukraine for banking activities were held by 176 Ukrainian banks (public joint stock companies), one of which is licensed as a remedial bank.