31 May 2019
Banks and non-bank financial institutions describe the state of the financial sector as satisfactory, but are concerned about the state of cooperation with international financial institutions. This is evidenced by results from the latest Systemic Risk Survey conducted by the NBU.
Two thirds of the surveyed financial institutions
described the state of the sector as satisfactory, and 21% said it was good.
Most respondents expected no changes in the state of the sector over the
next six months. Some 64% of those surveyed said that the total current risk
level was average, with 36% referring to it as high.
For three reports running, respondent have cited corruption and the
performance of the law enforcement authorities and the judicial system as the
main sources of risk: 57% of respondents said these factors were sources of
high risk, while 29% referred to them as sources of very high risk.
Meanwhile, the largest percentage of respondents (32%) named political
and social conditions in Ukraine and the state of cooperation with
international financial institutions as sources of very high risk. The surveyed
financial institutions also confirmed this in open questions, specifying that
cooperation with the IMF was critical for safeguarding the sector’s stability.
The top five sources of risk included:
the performance of the law enforcement authorities and the judicial system
social conditions in Ukraine
the state of
cooperation with international financial institutions
the level of
protection of creditor and investor rights
● fraud and cyber threats.
Compared to the previous survey conducted in
November 2018, the largest increases were reported for risks arising from
political and social conditions in Ukraine, and changes in the inflow of
foreign capital (direct investment) into Ukraine. The risk arising from
competition on the financial services market was reported to have decreased
most of all.
The "Systemic Risk Survey is available in the Publications Section of the
NBU’s official website at:
The next Systemic Risk Survey will be published in
This survey was carried out from 13 May through 27 May 2019. Executives from 20 banks, four insurance
companies, and four investment firms took part in this survey. Financial
institutions against which sanctions have been imposed were not surveyed.
Summary results were calculated by giving equal weight to each survey response,
regardless of the size of the bank/company, or its market share.
The Systemic Risk Survey, which is conducted twice a year, aims to study
how the largest banks and non-bank financial institutions perceive current and
potential risks to the financial sector. This report shows how top
managers of financial institutions assessed the state of the financial sector
over the past six months, and what they expect for the following six months.
The results presented are based on the respondents’
opinions and do not necessarily reflect the NBU’s views on financial sector