The National Bank proposes to introduce a moratorium on the reduction of the branch network of state-owned banks during the war

The National Bank of Ukraine has appealed to the Ministry of Finance of Ukraine and the management of state-owned banks with a proposal to introduce a moratorium on the reduction of the network of state-owned bank branches during the war.

This is reported by the regulator's press service.

State-owned banks occupy a significant share in the banking system of Ukraine – 50% of all branches and 65% of the total network. At the same time, their number has recently decreased, which has been the subject of complaints from territorial communities to the National Bank. 

The closure of the branches is due to the need to ensure the safety of employees and to optimise costs, given the decline in profitability due to military aggression by russia. However, the regulator believes that the economic efficiency of such decisions may be negated by a negative social effect and pose potential threats to Ukraine's national security. 

"Socially responsible banking should be a priority for all financial institutions during the war, especially for state-owned banks. Ensuring maximum accessibility of financial services for the population is one of the strategic objectives of their activities today," the NBU points out. 

Therefore, the NBU proposes that the Ministry of Finance consider a moratorium on the termination of branches by banks with a state share in the capital until the end of martial law (unless it is related to security issues).

At the same time, the NBU supports the initiative of some banks to ensure the availability of banking services through the use of mobile branches.