The Council of the National Bank of Ukraine (NBU) has said that the NBU board worked too slowly to provide for supervision over operations of PrivatBank nationalized at the end of 2016.
"Late steps of the NBU board did not allow taking timely measures to stabilize the situation and minimize financial losses," the NBU Council said in a decision made on July 4 posted on the NBU's website on Wednesday.
The council recalls that for the replenishment of PrivatBank's capital, the state has already spent the equivalent of almost 5% of GDP, and taking into account the decision on additional capitalization by UAH 38.5 billion made in the second half of June, these expenditures could grow to about 7% of GDP.
The NBU Council also points out that as a result of the nationalization of PrivatBank the state share in the banking sector of Ukraine exceeded half of this sector, in particular, for net assets - 56%, for population deposits - 62%.
"The prevailing state share in the banking segment is now one of the main systemic risks of Ukraine's financial system," the council said.
The council called on the government and the NBU board to quickly update the strategy for reforming state-owned banks, which should form the basis for new business models of these banks.
