After the reform of the banking system, or the so-called “bank collapse”, when a significant number of inefficient financial institutions were closed in Ukraine, the level of trust of citizens in the banking system decreased. However, over the past two years, there has been a noticeable return of confidence in banks. The number of hryvnia deposits increased to the highest level in a decade.
“Deposits in hryvnia to GDP are now at their maximum for the last 10 years. Already according to the results of March, bank deposits in hryvnia resumed growth, finally recording this trend in April. In particular, in April they increased by UAH 24.1 billion (+1.5 “), from the beginning of the year – by UAH 29.8 billion (+1.8%). Deposits in foreign currency also increased (+0.35 billion dollars or by 1.8% from the beginning of the year),” he notes. Head of the Committee of the Verkhovna Rada of Ukraine on Finance, Tax and Customs Policy Danilo Getmancev.
Since 2022, the volume of hryvnia deposits has increased by 80% (+739 billion hryvnias). As a share of GDP, such deposits increased from 18.6% at the end of 2021 to 24.9% of GDP at the end of 2023.
According to Hetmantsev, this is an excellent opportunity and incentive for the growth of lending, which will result in the acceleration of economic growth.
“The banking system maintains the trust of depositors (both on the part of the population and businesses), remains ultra-liquid and stable. I emphasize once again that we must work more actively to direct part of such free liquidity to lending to the real economy. Lending is recovering, but very, very slowly “One of the incentives for its growth should be the adoption of the draft law on the National Development Institution, which is conceived as a Ukrainian analogue of the German KfW and will hopefully become the same success story of post-war recovery,” the head of the parliamentary committee notes.
