“The vast majority of funds allocated to finance defense capabilities return to the banking sector – NBUAccording to Kateryna Rozhkova, funds allocated for defense return to banks in the form of payments to the military. The share of
banks’ investments in domestic government bonds also increased to 26-27%.”, — write: unn.ua
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The vast majority of funds raised by the government today to finance defense capabilities are returned to the banking sector in the form of payments to the military. Thus, the liquidity of the banking sector is not “dried up”
She also added that domestic government bonds (OVDPs) have increased compared to the pre-war period.
In the structure of bank balance sheets, the share of investments in government bonds is slightly higher than the pre-war level. This is approximately 26-27% in the structure of bank balance sheets. Before the war, it was just over 20%
According to Rozhkova, the structure of the NBU’s balance sheets looks acceptable even despite the significant amounts of budget deficit financing through the purchase of government bonds.
Currently, despite the significant amounts of budget deficit financing through the purchase of government bonds, the structure of balance sheets looks acceptable even despite the point of view of various economic theories and approaches
Rozhkova also expressed hope that the loan portfolio will grow at the same rate in 2025. She added that she does not see any risks to financial stability in this area.
We expect that in 2025 the loan portfolio will grow at the same rate – 20-25%. This will balance investments in government bonds. We do not see any risks to financial stability here
AddendumPervin Dadashova, Director of the Financial Stability Department of the National Bank of Ukraine, reported that as of today, there is an increased macroeconomic risk, in particular the risk of capital and the risk of profitability. At the same time, credit and currency risks have decreased.