"Steady trend": the National Bank says banks are making loans cheaper
Kyiv • UNN
The National Bank of Ukraine reports a steady downward trend in lending rates: since June last year, lending rates have fallen by 4%, indicating a gradual recovery in lending activity across various sectors, including corporates, small and medium-sized businesses, and retail lending.
The National Bank sees a steady downward trend in the cost of credit. This was stated by NBU Governor Andriy Pyshnyi during his annual report to the Verkhovna Rada Finance Committee, a UNN correspondent reports.
Since June last year, we have seen a steady upward trend in the net hryvnia loan portfolio. This means that it is not just that banks are lending, it is that banks are increasing their loan portfolio. It is growing even as part of this portfolio is being repaid accordingly. We see a steady downward trend in the cost of credit. Since June, lending rates have decreased by 4%, hryvnia
According to him, there is a steady growth in all signals of lending activity.
Loans to corporations, legal entities, loans to small and medium-sized businesses, retail loans. Everything is gradually recovering, and this is facilitated by the good condition of the banking system. Yes, financial stability is ensured, and the banking system is currently operating at its maximum operational efficiency, but at the same time, let's remember that the financial and insurance banking sector accounted for 19% of all fees and charges to the state budget in the first quarter of 2024. This means that the banking system's contribution to the state budget not only contributes to the overall development of the economy, but also has a tangible and record-breaking fiscal effect. Therefore, it is now important for us to convert all these achievements, this resilience into a sustainable model of lending development
Addendum
Pyshnyi reportedthat Ukrainians' confidence in the national currency has strengthened. Despite the war, the downward trend in household time deposits was reversed.
As part of the SME support in Ukraine, in May, entrepreneurs received 823 loans worth UAH 2.4 billion.