Ukrainian banks recorded a significant increase in risks in their loan portfolio, which forced them to almost double their provisions in the third quarter of 2025 – from UAH 1.1 billion to UAH 2.3 billion. This is stated on the Ministry of Finance website, writes UNN.
Details
According to the Banking Sector Review, the sharp increase in provisions is due to increased lending and a simultaneous decrease in the quality of certain loans.
In total, over seven months of 2025, banks' provisions amounted to UAH 4.93 billion, while for the same period last year, this amount was only UAH 0.38 billion. This led to a reduction in the net profit of the banking sector.
In addition, since September 2023, the National Bank of Ukraine has increased the mandatory reserve requirements for legal entities' funds to 10% in national and 20% in foreign currency, which also affects liquidity and lending.