Ukraine Banking & Financial Services Q2 2018
Ukraine's complex financial services sector is continuing to undergo a period of transformation, with the support of theEU. The IMF is also overseeing a regulatory overhaul in the country's banking sector. There are positive indicators appearing inUkraine's banking sector, with loan growth returning in 2017 and being forecasted to continue rising over the next couple of years.
Non-performing loans remain precariously high, however, which will inhibit banks' ability to substantially ease credit conditions byany great amount. As banks and corporate sector borrowers remain focused on FX deleveraging, loan growth will be primarily drivenby UAH lending, inhibiting a stronger recovery.
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