KYIV. Nov 11 (Interfax-Ukraine) – Ukraine has made the most progress in cleaning up its banking system and making it more resilient to future shocks among the countries in the region of the European Bank for Reconstruction and Development (EBRD), reads a report posted on the bank’s website.
“Despite continuing problems with non-performing loans, there are positive developments among financial sectors as countries have cleaned up their banking systems and made them more resilient to future shocks. Among these countries, Ukraine has made the most progress. Since 2014, the country has seen the closure of over 50 banks with opaque ownership structures, excessive related party lending and weak management and corporate governance,” reads the document.
However, according to the bank experts, the banking sector in Ukraine will remain under pressure due to a strong devaluation of the hryvnia and increased credit risks.
“Recapitalization of banks is continuing, and regulatory measures have been taken, including rules on lending to related parties to make the banking sector more stable,” the report states.
