The banking system has demonstrated resilience since the beginning of the full-scale war. Experts are now talking about further development prospects, and the National Bank, among other things, notes a reduction in the share of non-performing loans. Olena Sosiedka, co-founder of the first Ukrainian fintech ecosystem Concord Fintech Solutions, spoke about the potential reserve for the development of the Ukrainian banking system in a commentary to UNN.
In her opinion, the potential reserve of the Ukrainian banking system lies in several key aspects:
Digitalization and innovation: the introduction of the latest technologies, such as blockchain and artificial intelligence, can increase efficiency and reduce risks in the banking system.
Expanding capital markets: The development of capital markets, in particular bond and equity markets, can provide more opportunities to attract investment and diversify funding.
Improving regulation: Strengthening regulation and supervision of banking activities can reduce risks and increase confidence in the financial system.
Privatization of state-owned banks: privatization of state-owned banks can increase efficiency and competition in the banking sector.
Improving asset quality: A reform process aimed at improving the quality of banks' assets, in particular by addressing NPLs, is key to the health of the banking system.
Integration with international financial systems: convergence with European financial standards and practices could increase Ukraine's attractiveness to foreign investors.
These measures can contribute to the stability, transparency and efficiency of Ukraine's banking system,
But one of the key aspects was and still is the public trust in the banking sector.
"Ukrainians' trust in the banking system plays a key role in the country's economic stability. Until February 2022, this level of trust fluctuated quite a bit, reflecting the general economic and political uncertainty in Ukraine. However, after the outbreak of the military conflict with Russia, the government and the National Bank of Ukraine took measures to ensure the stability of the hryvnia and the financial system as a whole, which may have had a positive impact on public confidence," says Sosiedka, adding that a number of NBU policies to strengthen banks' liquidity and limit currency risks, including the establishment of control over foreign exchange transactions and stabilization of the exchange rate, had a positive effect.
In her opinion, these actions, along with the support of international financial organizations, have generally helped restore Ukrainians' confidence in the banking system, despite the difficult military circumstances.