NBU
The National Bank of Ukraine (NBU) and McKinsey global management consulting firm will start assessing performance of the Ukrainian banking sector this week, according to a posting on the official website of the regulator.
"The project will contribute to establishment of a solid foundation for the future of the banking system, which enters a new stage of reforming after completion of the "cleansing" process," a statement reads citing Deputy Governor of the NBU Vladyslav Rashkovan.
According to him, the assessment will be conducted as to the performance of large and medium-sized Ukrainian banks, which will help enhance their efficiency in the short term.
Rashkovan noted that the project will be implemented in several stages and conducted together with the banking community with support of McKinsey firm. Current operational efficiency and income growth of the Ukrainian banking sector will be compared with similar markets on the basis of key performance indicators.
"The project will begin this week and is scheduled to be completed in December 2015. Similar projects have been recently carried out in Poland and the Baltic States. This is an important initiative, which is implemented by the National Bank of Ukraine, the Independent Association of the Banks of Ukraine, and all banking community, and will help improve the quality of services and efficiency of the banking sector of Ukraine," according to Iryna Shvakman, senior partner at McKinsey and one of the project leaders.
As UNIAN reported earlier, following the results of the stress tests carried out by the National Bank for the largest 35 banks, the total capitalization need for all banks stands at around UAH 66 billion. The state-owned banks need UAH 12.5 billion, while the capital needs of subsidiaries of foreign banks were estimated at UAH 20.5 billion.
Experts emphasize that insolvent banks should be withdrawn from the market in order to stabilize the country's financial sector.