Financial institutions show strong resilience to adverse events – NBU

The National Bank announce this, according to Ukrinform.

"Executives of the largest banks and non-bank financial institutions have been consistently improving their assessments of the financial sector's resilience to significant adverse events for over two years. About 97% of respondents rated this resilience as moderate or higher," the statement reads.

It is noted, that about half of the respondents described the financial sector’s current state as good or very good. This perception has remained stable across three consecutive surveys since November 2023.

Most participants noted no changes in the sector’s condition over the past six months and do not anticipate significant shifts in the next half-year. However, the share of respondents predicting a decline has grown.

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While 41% of executives rated sectoral risks as high or very high, the rest considered them moderate or low. Ongoing war with Russia remains the dominant risk. Other major risks include challenges linked to law enforcement and judicial systems, corruption, legislative and tax system quality, and human capital issues.

Additionally, over the past six months, financial institutions have shown a slight increase in risk-taking tendencies, though most respondents reported no change in their overall risk appetite.

Strategic Outlook:

As reported by Ukrinform, on November 25, 2024, the NBU approved a framework for assessing the resilience of banks and the banking system for 2025. The evaluation will be based on data from January 1.