The former deputy chairman of the National Bank of Ukraine, who currently serves as deputy executive director of the International Monetary Fund, Vladyslav Rashkovan, expects the total number of Ukrainian banks to be reduced further in 2018 to 70-78 financial institutions, Interfax-Ukraine reports.
“The consolidation of banks will lead to a further reduction in the number of banks on the market. By the end of 2018, there will be no more than 70-78 banks in Ukraine against 85 operating today,” he wrote in his article “The World in 2018” in the joint edition of the magazines Novoye Vremya and The Economist.
Rashkovan expects the share of the country’s 20 largest banks to remain at 92-93% of assets. He also predicts a further rise in the share of foreign and state-owned banks, while the share of local and Russian banks will decrease. “There won’t be new foreign banks on the market, but deals for purchase of bank assets will continue,” Rashkovan wrote.
The number of banks operating in Ukraine has experienced a steady decline since early 2014. Out of 180 banks operating in the country in 2014, only 88 remain in business today.