NBU: Private national capital's share of assets of Ukrainian banking sector 66.7 p.p. down in three years

The share of private national capital (not taking into account PrivatBank) of assets of the Ukrainian banking sector has decreased by 66.7 percentage points in the past three years, to 13.2%, according to a first financial stability report of the National Bank of Ukraine (NBU).

According to the document, the share of banks with foreign capital grew from 26.1% to 35.8%.

"Since 2014 almost 80 banks with Ukrainian private capital have become bankrupt or have been removed from the market due to other regions, and banks with foreign capital partially restored their positions on the market. Concentration in the banking sector will continue in the short-term due to migration of clients to reliable banks, including state-run banks," the NBU said.

The central bank said that the concentration ratios of five largest banks (CR5) has grown since 2008-2009 and reached 54% in March 2016. This is higher than average indicator than in EU countries.