[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/onb/oenbfs/y2012i23b1.html
   My bibliography  Save this article

Ukrainian Banks Face Heightened Uncertainty and Challenges

Author

Listed:
Abstract
Following a sharp recession in 2009, the Ukrainian economy recovered in 2010 and 2011. In particular in 2011, domestic demand-led growth was accompanied by widening external imbalances. The economy’s external vulnerabilities – related to the current account deficit (2011: 5.6% of GDP) and the elevated foreign debt stock (77% of GDP) – entail risks for the banking sector, as exchange rate pressures against the hryvnia’s U.S. dollar peg have been recurrent and foreign exchange reserves declined in the second half of 2011. While the share of foreign currency loans in total loans has been steadily declining (thanks to a ban on extending new foreign currency loans to unhedged borrowers imposed by the National Bank of Ukraine in the fall of 2008), it remains sizeable (end-2011: 41%). Many of these loans are unhedged. The stabilization of nonperforming loans at a high level could be interrupted by a further deterioration of the economic situation or by a new bout of hryvnia depreciation. Moreover, the population’s confidence in the Ukrainian currency is prone to volatile swings. As deposit inflows have picked up and loan growth has remained subdued, the loan-to-deposit ratio has receded, but is still relatively high (end-2011: 163%). With the funding structure shifting to domestic deposits, the banking sector’s external position has improved (net external liabilities have fallen to 8% of total liabilities). In 2011, loan growth became positive in real terms again. Recapitalization efforts contributed to upholding capital adequacy. The banking sector’s profitability improved, but nevertheless stayed in negative territory.

Suggested Citation

  • Stephan Barisitz & Ulrich Gunter & Mathias Lahnsteiner, 2012. "Ukrainian Banks Face Heightened Uncertainty and Challenges," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 23, pages 50-57.
    • Handle: RePEc:onb:oenbfs:y:2012:i:23:b:1
    as

    Download full text from publisher

    File URL: https://www.oenb.at/dam/jcr:139d4c3e-c40d-46bc-b73a-df35fa529c1c/fsr_23_special_topics_01_tcm16-249136.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stephan Barisitz & Mathias Lahnsteiner, 2009. "Investor Commitment Tested by Deep Crisis: Banking Development in Ukraine," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 18, pages 67-75.
    2. repec:wii:fpaper:fc:9:ua is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stephan Barisitz & Zuzana Fungáčová, 2015. "Ukraine: struggling banking sector amid substantial uncertainty," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 29, pages 72-92.
    2. Stephan Barisitz & Mathias Lahnsteiner & Daniela Widhalm & Tina Wittenberger, 2014. "Macrofinancial Developments in Ukraine, Russia and Turkey from an Austrian Financial Stability Perspective," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 27, pages 64-73.
    3. Barisitz, Stephan & Fungáčová, Zuzana, 2015. "Ukraine: Struggling banking sector and substantial political and economic uncertainty," BOFIT Policy Briefs 3/2015, Bank of Finland Institute for Emerging Economies (BOFIT).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mathias Lahnsteiner, 2020. "The refinancing of CESEE banking sectors: What has changed since the global financial crisis?," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1/20, pages 6-19.
    2. Hans-Joachim Dübel & Simon Walley, 2010. "Regulation of Foreign Currency Mortgage Loans : The Case of Transition Countries in Central and Eastern Europe," World Bank Publications - Reports 12943, The World Bank Group.
    3. Jana Grittersov�, 2014. "Transfer of reputation: Multinational banks and perceived creditworthiness of transition countries," Review of International Political Economy, Taylor & Francis Journals, vol. 21(4), pages 878-912, August.
    4. repec:onb:oenbwp:y:2012:i:23:b:1 is not listed on IDEAS
    5. Barisitz, Stephan & Fungáčová, Zuzana, 2015. "Ukraine: Struggling banking sector and substantial political and economic uncertainty," BOFIT Policy Briefs 3/2015, Bank of Finland Institute for Emerging Economies (BOFIT).
    6. Stephan Barisitz & Mathias Lahnsteiner & Daniela Widhalm & Tina Wittenberger, 2014. "Macrofinancial Developments in Ukraine, Russia and Turkey from an Austrian Financial Stability Perspective," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 27, pages 64-73.
    7. Stephan Barisitz & Zuzana Fungáčová, 2015. "Ukraine: struggling banking sector amid substantial uncertainty," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 29, pages 72-92.
    8. Ruoyu Cai & Mao Zhang, 2017. "How Does Credit Risk Influence Liquidity Risk? Evidence from Ukrainian Banks," Visnyk of the National Bank of Ukraine, National Bank of Ukraine, issue 241, pages 21-32.

    More about this item

    Keywords

    Banking sector; banking crisis; nonperforming loans; external vulnerabilities; recapitalization; Ukraine;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:onb:oenbfs:y:2012:i:23:b:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stefan W. Schmitz (email available below). General contact details of provider: https://edirc.repec.org/data/oenbbat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.