The situation in the Ukrainian banking system is stabilizing, President of Ukraine Petro Poroshenko has said.

"At present we have every reason to claim the situation in the banking system is stabilizing," he said at a press conference in Kyiv.

"The National Bank governor is a professional person, who ensures the stability of the banking system," the president stressed.

In this regard, Poroshenko noted the growth of foreign exchange reserves, the stabilization of a floating exchange rate and said inflation targeting and negotiations with the International Monetary Fund are effective.

The head of state explained the central bank faced a choice: to refinance insolvent banks without the guarantee of returning these funds or liquidate these financial institutions, recovering the banking system.

"We are now reaping the fruits of irresponsible banking policy, which dates back to 2008 - the fruits of the crisis, the fruits of the war," he said.