The collapse of the national currency and a deep economic recession may have a negative impact on the banking system of Ukraine, writes.
This year alone, 12 Ukrainian credit institutions have lost your license, in 14 of the temporary administration. In the past year licenses were selected from 17 credit institutions on the political background of the conflict in the East of the country and the ensuing recession, recalls the magazine.
last month the currency fell by 30% against the dollar. The national Bank of Ukraine tried to conduct foreign exchange auctions and raised the discount rate from 14 to 19, 5 per cent. Efforts were in vain, reported in the publication. Banks have lost up to 40% of the total volume of foreign currency loans. The problem is that, while at the same time, most of the loans are denominated in foreign currencies, income Ukrainian credit organizations are formed for the Most part from the proceeds of the national currency. Debts to credit institutions in the last 2 months only getting more expensive, emphasizes Business Insider.
The average capital adequacy by which to judge the reliability of the Bank, the Ukrainian financial institutions in February fell 10% below the regulatory minimum. Currently, there are dialogues on the need to facilitate the performance requirements of capital adequacy for credit institutions, But this may require some form of recapitalization, reported in the publication.
as long as it remains an open question how the Ukrainian authorities will find the funds to recapitalize financial institutions - currently Kiev made a collision with the necessity of negotiations with international lenders on the revision of obligations for the payment of public debt. However, it is possible that lenders will find that it is cheaper to save a fragile banking system of Ukraine, instead of to allow it to collapse, as this will lead to a complete Collapse of the entire financial system of the country, says Business Insider.