The banking sector has successfully weathered through the first wave of coronacrisis; however, it must get ready for adverse medium-term consequences.
National Bank / Photo from UNIAN
First Deputy Governor of the National Bank of Ukraine (NBU) Kateryna Rozhkova says tamed inflation, stability of foreign exchange market, and failure-free operation of the banking sector promote a further decrease in interest rates for households and businesses, which may be record low over Ukraine's independence by the end of the year.
"For the first time since the dawn of its independence, Ukraine is to enjoy a period of single-digit deposit rates. This lays grounds for a drop in the cost of loans. In the absence of new macroeconomic shocks and given the ongoing enhancement of creditor rights protection, loan rates [for households and businesses] will hit the record lowest in the history of our banking sector," she said during an online briefing when presenting the Financial Stability Report on June 24.
In view of sufficient capital and liquidity as well as lower interest rates, the banks are ready to support businesses and households and to promote economic recovery, she added.
Rozhkova stressed that the banking sector had successfully weathered through the first wave of coronacrisis. However, it must get ready for adverse medium-term consequences.
As UNIAN reported earlier, the National Bank continued easing its monetary policy, cutting thekey rate to 6% per annum effective June 12.
Ukrainian banks' net profit grew by 23.6% in January-May 2020 year-on-year, to UAH 28.964 billion (US$1.billion).