Banking market in Ukraine should be reduced by half
Baku, Azerbaijan, Oct. 28
By Azad Hasanli - Trend:
Some 50-60 banks are sufficient for the Ukrainian banking market, deputy chairman of the Ukrgasbank Alexey Alexandrov said.
He made the remarks during the annual Affluent & Private Banking Forum of top managers of the leading CIS banks in Baku.
There are 126 banks in Ukraine as of September 1, 2015, according to the National Bank of Ukraine [there are 43 banks in Azerbaijan].
"Some 60 financial institutions have recently closed in Ukraine, five of which are large banks of systemic importance," he said. "By 2015, the banking system of Ukraine had to recover from the 2008 financial crisis, but there was a second wave of economic crisis ..."
Moreover, Alexandrov said that the influence of Russian banks on the banking market in Ukraine diminishes.
"First of all, the matter rests in the Vnesheconombank, which operates in Ukraine under the brand Prominvestbank, then VTB and Sberbank of Russia," he said.
In 2008, the share of banks with foreign capital in Ukraine exceeded 60 percent, and now their share is less than 30 percent, according to the deputy chairman of Ukrgasbank.
At the same time, the trend "rich people get richer", which lasts long enough, is true for Ukraine as well, Alexandrov said.
"Last year, the owners of big private capital got poorer," he said. "The wealth was distributed in excess in favor of larger customer segments. That is, to put it simply, rich people are getting richer. Currently, 8 percent of customers of banks own over 50 percent of global capital. This is in view of the fact that 82 percent of bank's customers in the world accounts for the middle class."
Edited by CN