The development of Ukrainian banks under current conditions

On the eve of elections, it sounds very much different predictions and opinions on the current situation and prospects of the domestic banking system. The main thing - to pay attention to who goes mesidzhi. Thus, excessive pessimism sounds from the mouth of the obvious and hidden until the candidates, making the main leitmotif of their pre-election rhetoric. Strange, but apparently, many seriously believe that it is this rhetoric will help them to "enter" in the Rada. However, if the words of people's deputies of potential can be treated with an amendment to the availability, lack of financial education, according to the real experts should listen more closely. By the way, among them odnogolosoe in the estimates is not observed. So what's really happening with the banking system of Ukraine? As far as she is vulnerable and can we expect more bankruptcies or disasters?

 The outcome of the banking system in the first half of this year is already possible to draw definite conclusions. To date, Ukraine has 176 banks, one bank remediation. Prior to the crisis in Ukraine were 198 banks. The crisis, "ate" more than 10 percent of banks are very well shown, who was capable of.
 As a result of the I half of 2012 the total assets of the banking system of Ukraine amounted to USD 1.1 trillion, or about 138 billion dollars before the crisis the total assets of Ukrainian banks amounted to about 120 billion in dollar equivalent. The crisis has reduced the number of banks, but banks' assets have increased, which shows much the revival of the banking system after the crisis. Despite all the pessimistic predictions, we can say that the crisis for the Ukrainian banks - is history.
Another important indicator - the granting of loans. From time to time you can hear the complaints that banks are not lending. In this link for information on the loan portfolio of all banks in Ukraine. Indeed, during the first half of 2012 the total loan portfolio of Ukrainian banks grew by only 605 million USD. This is despite the fact that the total loan portfolio of banks for about 794 billion USD. However, a mistake to assess the market for lending to total loans.
 Where more visible indicators of the volume of loans granted in the context of the borrowers. In the first six months of 2012 portfolio of loans to legal entities grew by almost 12 billion USD. Here is a portfolio of natural persons for the same period fell by 11 billion USD. That is, there has been no cessation of lending, but rather a change of orientation or, more precisely, the recipients receive the money. Indeed, at the moment banks are more inclined to lend to legal entities, while lending to individuals has become secondary. There is nothing surprising or unusual. Just always more profitable to the banks to give loans at a time of ten million legal person, than to deal with a loan of ten thousand for the individual. In addition, the crisis has tested the borrowers' strength and reliability, "and showed very good banks from their borrowers who was capable of and what to expect from anyone. As a result, and - corporate lending increased. Although the same legal entity complaining of the high interest rates, but the intention to take out a loan do not give up. And the individuals at this stage of history more than repay loans than taking new ones. The first reduction in the amount of loans granted to individuals is due to the decline in long-term debt (total long-term loans for the first half of the population has decreased by 10 billion USD.).
At the time the credits of the population are becoming less popular, the popularity of deposits increases. As of July 1, 2012 individuals in Ukrainian banks keep on deposit at 340 billion USD. Since the beginning of this year has placed an additional population of banks on deposits of money worth about 31 billion UAH. Of these, 22 billion USD had to increase the hryvnia deposits and 9.5 billion UAH - for increase in foreign currency deposits. The amount of money that individuals hold on deposit in banks have long been exceeding its pre-crisis period, in dollar terms. Despite all the fears and anxieties "physics" continue to place their money in bank deposits. And the results speak for themselves - namely deposits of natural persons are the main sources for all the liabilities of Ukrainian banks, including banks and for foreign owners of s. And it is these deposits now provide a basis for lending.
 It may seem unfair to someone that gives people more money to the banks through deposits than it receives money from a bank in the form of loans. But this is a normal condition of the banking sector around the world, including Western Europe and the USA. Legal entities do not always have enough money for business and so they - the main recipients of credits, and individuals, as people are prone to accumulate more interested in the successful growth of their cost savings than in an effort to give a loan to others.
 The practice of lending to businesses through the deposits of the population has led to the fact that banks are forced to adapt to the interests of both business and individuals. Banks are very keen to attract deposits at low rates. But the situation on the Ukrainian financial market is that you can encourage lower rates on deposits, but it is difficult to reduce the real. As a result, banks are forced to go to the loss of their income. The net interest margin for the first half of 2012 amounted to 4.73%. Before the crisis, this figure was at 5.3%. Reduced and the spread between lending and deposits. Before the crisis, he was at the level of 5% or more, and now - just 3.96%. That's where the real problem of the banking sector - reduced its profitability, and it is a fact to which little attention.