Some financial institutions use advantages that do not -confirm and do not respond to the regulator’s financial policy.
Ukrainian banks continue to be artificially small small deposits for population deposits, despite the National Bank of Ukraine’s proposals aimed at increasing betting and strengthening competition in the market. It has become known from the results of the NBU Monetary Policy Committee assembly.
Some financial institutions use advantages that do not -confirm and do not respond to the regulator’s financial policy.
During the meeting, the decision was supported to increase the discount rate by 15.5%, but CMP members noted that the previous steps to increase the discount rate had insufficient impact on the level of interest rates on deposits.
Participants in the meeting indicate that there is a significant excessive liquidity in the banking system, as well as a high concentration in the market is preventing the growth of deposits.
“Some banks and then use the non-competitive benefits of the concentration of excessive liquidity, especially, due to the uneven redistribution of significant social payments and military salaries. It prevents them from revising their own interest policy, ignoring NBU’s relevant steps. It affects the overly controlled rate of the level of deposit rates on the average system,” Regulator’s message.
Thus, despite the increase of discount rates, banks are not in a hurry to offer the population a higher profitability through deposits, reducing the motivation of the Ukrainians to store saves in hryvnia.
Due to this situation, most KMP members have established the operation of the operation policy design policy to create additional incentives for banks to compete for depositors and increase the amount of urgent hryvnia deposits.
“As a result, the part of the demand is that it is reorienting from the consumption and purchase of hryvnia savings currency.
The regulator expects banks to gradually change their policy and begin to raise rates to attract more funds from the population.
In the case of further ignoring the regulator decisions of the banks, the National Bank may apply additional administrative levers of influence.
Remember that the NBU said the Net Profit of Banks in Ukraine for 2024 reached UAH 103.7 billion, which was 17.2 billion UAH over a year before. The largest part of the income – 39% – fell into the state privatbank.
Ukraine’s top-10 banks increased total income of 14%
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.