NBU elaborates on banking sector in 2020: Shutdown of bank branches, lay-offs.

Photo from UNIAN

Photo from UNIAN

The National Bank of Ukraine (NBU) says the number of bank branches in 2020 decreased by 868, while that of ATMs declined by 1,177.

That is according to the regulator's February review of the banking sector published on the NBU's website on February 17.

Read also National Bank becomes member of Global Network of Financial Innovations "In the fourth quarter [of 2020], state-run [Ukrainian] and foreign banks shut down 205 branches. Oschadbank was in the lead (94 branches), while Ukrgasbank opened the most of branches, that is seven. In 2020, the number of bank branches shrank by 868, most of all in Dnipropetrovsk region (71)," the report said.

The financial institutions continued lay-offs last year, their number decreased by 5,000 people.

In addition, the number of ATMs is "constantly declining," the NBU said. Last year, banks withdrew 1,175 ATMs from their networks.

The number of active payment cards was growing rapidly in the last two quarters of 2020. Private banks were in the lead in October-December 2020, the report said.

In 2020, Ukrainian-registered banks posted UAH 41.3 billion (US$1.5 billion) in net profit, which was 29% down from a record high of UAH 58.4 billion (US$2.1 billion) in 2019.

In 2020, some 65 banks out of 73 solvent banks turned out to be profitable, having posted UAH 47.7 billion (US$1.7 billion) in net profit, which overlapped eight banks' losses totaling UAH 6.4 billion (US$229.4 million).

Background

  • On March 17, 2020, the National Bank eased a number of requirements for banks to support them during the coronavirus-related quarantine, in particular, postponed stress testing and on-site inspections. However, the regulator continued monitoring financial sector performance, including its liquidity and the quality of loan portfolios.
  • On March 26, 2020, the central bank postponed the requirement for banks to build up a capital cushion during economic growth to be used as compensation for possible losses in the event of an economic downturn.
  • Also, the NBU approved a procedure for regular remote inspection of players on the non-banking financial services market.
  • On February 10, 2021, the regulator resumed stress testing and sustainability evaluation of banks operating in the country after a break caused by the 2020 coronavirus-related crisis.

Author: UNIAN

Unian

Read the top-news of politics in Ukraine and the world, the latest political news from the UNIAN news agency.

https://www.unian.info/

Related news
Economy Ministry predicts grain harvest in Ukraine at 75.

Economy Ministry predicts grain harvest in Ukraine at 75.

The Ministry of Economic Development, Trade and Agriculture of Ukraine predicts the harvest of grain and leguminous crops in 2021 at the level of 75.1 million tonnes, which is 14.6% higher than in 2020, Deputy Minister of Economy Taras Vysotsky sa...

Interfax-Ukraine

German government loses support on coronavirus policies +++ US ramps up vaccination drive - DW News.

German government loses support on coronavirus policies +++ US ramps up vaccination drive - DW News.

Despite rising coronavirus infections German politicians are planning to extend the lockdown, but to lift some restrictions — particularly in areas with a low incidence of coronavirus cases. US president Biden says there will be enough vaccine ava...

California crime victims 'tormented' by DA's justice reforms.

California crime victims 'tormented' by DA's justice reforms.

Crime victims' families urge for the recall of Los Angeles District attorney George Gascón. #FoxNews #FoxNewsPrimetime Subscribe to Fox News! Watch more Fox News Video: Watch Fox News Channel Live: FOX News Channel (FNC) is a 24-hour all-encompass...

How a religious festival turned into a massacre

How a religious festival turned into a massacre

CNN has been investigating reports of a massacre at Maryam Dengelat Church in Ethiopia's Tigray region where dozens of people were killed over three days of violence. Read CNN's full report: #CNN #News

1 135

Covid-19 test centre rocked by explosion in ‘targeted’ pipe bomb attack in Holland.

Covid-19 test centre rocked by explosion in ‘targeted’ pipe bomb attack in Holland.

A BOMB explosion rocked a coronavirus testing centre in the Netherlands early on Wednesday - weeks after anti-lockdown riots left the country reeling. Police said a homemade device was deliberately placed in what appeared to be a "targeted attack"...

Lara Trump announces she's considering Senate run in 2022.

Lara Trump announces she's considering Senate run in 2022.

Former Trump campaign senior adviser discusses her potential candidacy on 'Hannity.' #FoxNews #Hannity Subscribe to Fox News! Watch more Fox News Video: Watch Fox News Channel Live: FOX News Channel (FNC) is a 24-hour all-encompassing news service...

Budget explained: Rishi Sunak extends furlough until September.

Budget explained: Rishi Sunak extends furlough until September.

As Boris Johnson’s roadmap for recovery reopens Britain over the coming months, Rishi Sunak’s budget will aim to support the economy as the nation exits the coronavirus pandemic. The furlough scheme, which sees the government pay 80% of employees ...