Target for consolidation of Ukrainian banks is 100 banks - World Bank

10:32, 23.09.2015 1 min read

The World Bank expects that the Ukrainian banking system would consolidate to 100 banks in 2016, according to its report on the Second Programmatic Financial Sector Development Policy Loan for Ukraine.

The borrower and the National Bank of Ukraine (NBU) have introduced additional criteria for the timely identification of problem banks to improve stability and efficiency of the banking system under the First Programmatic Financial Sector Development Policy Loan. Under the Second Programmatic Financial Sector Development Policy Loan being implemented the World Bank and the NBU have strengthened requirements for identifying and reporting related-party lending.

The World Bank said that the policy reforms that aim to create a healthier and more viable banking system will help to increase access to finance, and lower costs by increasing efficiency of the system.

NBU said that as of July 1, 2015 a total of 127 banks operated in Ukraine. In the period from January 2014 through July 2015, 54 banks were declared insolvent.