NBU: the costs of addressing the banking crisis is 14% of GDP

НБУ: Расходы на преодоление банковского кризиса составляют 14% ВВП

In two years, 90 banks were deemed insolvent.

The total losses of the Ukrainian economy from the crisis of the past years account for 38% of GDP. This reports the press service of the NBU following the meeting of the Board of the national Bank.

“Systemic banking crisis 2014-2016 has led to considerable financial losses for the state, business, population, as evidenced by official estimates of the National Bank, according to which the direct fiscal costs of Ukraine on overcoming of consequences of crisis of the banking sector has already reached 14% of GDP, which exceeds the related costs incurred during the financial and economic crisis of 2008-09, while total economic losses from the crisis are still 38% of GDP”, – stated in the message.

The NBU said that over the past years have been spent “cleaning” of the banking sector, in which 90 banks were deemed insolvent. Their assets before the crisis accounted for about a third of the assets of the banking system.

“A departure from the classical model of functioning of the banking system carries a number of risks for the further development of Ukraine’s financial sector. So this year there are signs of increasing demand for loans in the retail segment. In addition, predictions regarding economic growth give reason to expect further recovery in lending to the real sector. However, the concentration of banks in investing in government securities leads to a decrease of the credit potential of the banking system. With rising demand for loans this can be a consequence of the displacement of the regulated credit market unregulated that is by its nature a source of financial crises”, – the report says.

We will remind, the national Bank of Ukraine is considering the possibility of issuing electronic hryvnia on the basis of innovative technologies.

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