NBU reports on expectations in financial sector for next six months

Financial institutions generally believe the financial sector is now in a satisfactory state, while for the next six months pessimistic expectations prevail. 

However, the share of respondents who assess the state of the financial sector negatively has decreased since May.

That's according to the National Bank's press service referring to the "Survey on Systemic Risks in the Financial Sector" conducted in November.

"The assessment of the overall risk level in the financial sector has remained negative since May 2018. Two surveys in a row, about a third of respondents consider the risk level as high or very high. Most of the survey participants are pessimistic about the prospects of the financial sector for the next six months. However, the share of respondents who have negative expectations decreased notably: 71% in May 2020, 48% today," the report says.

Read alsoNational Bank halts forex interventions on interbank market for three weeksIt is noted that, according to the results of the survey, corruption and activity of law enforcement and judiciary remain a factor of high or very high risk for the financial sector. This is the opinion voiced by 91% of the heads of the surveyed financial institutions.

The respondents also pointed to the rapid growth of risks of the state of cooperation with international financial organizations and the aggravation of the political and social situation in the country.

"The economic risks that dominated in the May poll have faded into the background. Despite the high assessment of threats to the financial system, the risks of availability of funding and bankruptcy, according to respondents, are the least notable," the regulator's press service said.

The press service says the survey was conducted from November 11 to 25, 2020. CEOs of 19 banks, 12 insurance and two investment companies took part. The sample did not include sanctioned financial institutions. The final results did not take into account the size of the bank/company or their market share - all answers were equal. The next poll will be published in May 2021.

Read alsoUkrainian businesses facing more difficulties in 2020 – pollBackground

The number of citizens' appeals to the National Bank in the third quarter increased by 73% against the previous quarter, amounting to more than 16,000.