National Bank issued a preliminary key performance indicators of Ukrainian banks during the first six months. These data allow us to draw some conclusions about the \" wellbeing \" domestic financial system as a whole.
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Cash in vaults of banks is decreasing. This is largely due so that the economy continues with irrepressible gusto to absorb them, and talk about the "draconian" Internal Revenue Code, which is going to fall to approve the Parliament, encourage business to stock "Cash." As a result - than more of the commodity market in the shade, the lower the demand for banks. Interbank partially recovered, but has not reached crisis level. Its actually destroyed market collapse in late 2008. Even the most reliable banks were not able to pay off the debts. And so on the agenda the question - why rates interbank loans remain low (2-2, 7% APR)? Largely to blame excess liquidity. The important role played by the continuing lack of confidence - The financial institutions do not want to provide "colleagues" are not loans at any conditions. On the banks than they earn? First of all, on foreign exchange transactions. The benefit of our people are faithful to tradition - like to buy and sell foreign notes. Another source of income - securities transactions, usually it - T-bills. By July 1, investment banks in T-bills amounted to more than 61 bln. In 2008, such investments are not exceeded 30 bln. For many financial institutions such "movements" can to keep afloat and pay their debts. Credit side of the coin. The volume of loans is growing entities, and individuals falls. At the same time If the remnants of foreign currency loans on July 1, count on the current The dollar, in comparison with 2008 the volume of loans to legal entities and natural persons are is much higher - "credit growth is accelerating." But, if count the same amount in foreign currency equivalent, then compared to the summer 2008 a difference of "minus" That's $ 7 billion, this amount and presses the commodity market. Logical question - where to take the money? Provisions for loans. By July 1, 2010, the Bank of provisions on bad loans in the amount of more than 106 bln. At the same date in 2008 - 18 bln. Actually 88 billion UAH. frozen in the accounts of financial institutions. It is absolutely clear that banks will not "forgive borrowers," writing off the losses from reserves. If they decide to take this step, then their capital will be reduced by an identical amount. At present, the total capital of Ukrainian banks is 127 billion USD. If we subtract them from the 106 billion USD., We get a complete "paragraph" to the banking system. National Bank is well aware. Although the regulator and requires tightening deal with the "toxic" assets, but not in a hurry to punish those banks which continue to hold them on balance sheets. Where banks have money? Over 31% banks' liabilities (excluding capital) make money individuals. The share of funds legal persons - 16% (by 1 July of the current year), while at the same date 2008 - 22%. The crisis has deprived the ability to attract financial institutions to cheap money from abroad, has blocked the process of selling its own bonds. That's why the only hope for funds from the public. "Toxic" assets. For June 2010 losses of the banking system increased by 833 million UAH., reaching by July 8, 3 bln. The main reason - provisions for "toxic assets". If they decline, then the income will grow. By July 2010 return bank assets - "minus" 4, 38%. Interest margin is reduced, which is quite logically considering reducing interest rates on deposits. What disturbs another - to is very low rate of spread. By July 1 he was at the level 4, 4%, significantly lower than before the crisis. Only one conclusion - Banks clearly take a risk by continuing to attract deposits, "freezing" while lending and income from the "old" loans are absolutely insufficient.
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