The global economic crisis has a significant impact on Ukraine's open commodity economy, which is extremely sensitive to external risks: the global economic recession is a decline in demand for Ukrainian exports, the departure of investors from emerging markets, the loss of season for Ukrainian workers, which is a factor in rising unemployment and reducing the inflow of currency into the country.
Andriy Moiseenko, Deputy Chairman of the Management Board of Credit Dnipro Bank, told Business about the impact of economic factors on the work of the banking sector, updated credit strategies and priorities of banks.
"In general, the Ukrainian banking system is now better prepared for the next economic crisis than for the previous crises of 2008 and 2014-2015. In recent years, banks have pursued more conservative lending policies. However, as a result of the economic crisis, banks' operating profitability will decline. State restrictive measures have already become a serious challenge for all segments of the economy, and especially for the most vulnerable category of customers - retailers, which are the core customer base of banks. As a result, the pace of lending is declining and the quality of the retail loan portfolio is deteriorating - the main driver of growth and the generator of banks' income, "Andriy Moiseenko stressed.
The expert stressed that in the current reality, the key condition for the timely fulfillment by banks of obligations to depositors and maintaining a viable business model is not the dynamics of the loan portfolio, but its quality. Financial institutions rely on customer responsibility and an understanding of the need to meet their financial obligations as an important condition for the stable operation of banks, the financial system and the economy.
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