Non-bank financial institutions increase crediting by 39% in 2016
KYIV. June 22 (Interfax-Ukraine) - Non-bank financial institutions increased crediting by 39.4% or UAH 12.5 billion in 2016, to UAH 44.2 billion, Director General of the Financial Institutions Association (AFI) Viktoria Volkovska said at a press conference at Interfax-Ukraine on Wednesday.
She said that the pace of development of the non-bank lending market outstripped the banking segment. If the growth in loans issued by banks in 2015-2016 was 27%, the growth in the non-banking market amounted to 39.5%.
"The hryvnia-pegged loan portfolio of financial institutions is growing at the expense of consumer loans, which means that Ukrainians have become more active in using the credit services offered by the financial market," she said.
Volkovska said that high credit rates are linked to the low payment discipline of borrowers, risks of non-return and difficulties in recovering debts. A significant step in resolving this problem could be the adoption of bill No. 6027 amending some legislative acts of Ukraine relating to improving confidence between banks and their clients by the Verkhovna Rada. However, on June 20, the deputies sent the bill to the relevant committee for revision for repeated first reading. On the same day, they did not pass bill No. 2456-d amending some legislative acts of Ukraine on improving the protection of the rights of financial services consumers and returned it to the profile committee for revision for the second reading.
Member of the national commission for financial services markets regulation Olha Maksymchuk said at the press conference that starting from June 10 of this year, the conditions regarding the issue of the mandatory license for lending to those non-bank financial institutions that previously issued credits without a license entered into force.
"This should streamline the work of a fairly large number of financial institutions that are engaged in this type of financial services. Along with banks, credit unions, pawnshops and financial companies in Ukraine are engaged in crediting," she said.
Maksymchuk also pointed out the importance of the law on consumer crediting that came into force on June 10. The law is intended to protect the rights of consumers.