In Q1 2023, the average weighted interest rates for funds raised from businesses rose to 13.2%, from the public to 10.6% per annum
Demand for credit remains subdued
The volumes of liabilities of solvent banks increased by 2.1%, while the share of refinancing from the NBU halved to 0.9%.
This was reported by the NBU.
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The key risk for banks remains credit, while the recognition of war-related credit losses has slowed. Net deductions to reserves for loans for the quarter were only UAH 1.8 billion (-90.2% YoY).
"Banks have confidently weathered a year of full-scale war and are quickly resuming operations in de-occupied territories. The next stage is post-war recovery, in which the banking sector will actively participate by lending to the public and business. Improving the structure of the resource base and recognising credit losses are important elements of this preparation," commented Katerina Rozhkova, First Deputy Governor of the NBU.
Background. Mind reported that last year Visa had increased its market share in Ukraine to 45.6%, while Mastercard's share had dropped to 53.9%.
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