Banking In Ukraine
Ukraine gained independence in 1991 and has been establishing its banking system since. It has gone through several reforms, including acquisitions, mergers, financial crises, and a revolution. Between 2014 and 2016, 70 banks were declared insolvent by the National Bank of Ukraine. Today, this country has 117 banks in operation with a total asset value of $47.28 billion. Each of these banks works under the organization and direction of the National Bank of Ukraine. This government entity is responsible for stabilizing the national currency by ensuring stability in the national banking system. It carries out state policy on the exchange rate, credit, money circulation, and functions of other banks in the country. This article takes a closer look at the top 3 largest banks in Ukraine, according to total assets.
The Three Largest Banks In Ukraine
The largest bank in Ukraine is PrivatBank with total assets valued at $8.296 billion. It was founded in 1992 as one of the first privately owned commercial banks in the country. Additionally, it was the first bank to issue debit cards and install automatic teller machines (ATMs). It received its first international rating in 1997 and again in 1998 and 1999. In 2000, PrivatBank changed membership and became a closed joint-stock company. This bank continued advancing its products and in 2001 began its online account management platform. In 2014, the Ukrainian government began an investigation into the bank’s practices, including capital shortfall and corporate loans going primarily to shareholders. According to its findings, the government decided to nationalize its ownership in 2016. Today, it has 2,240 branches and over 30,000 employees.
The second largest bank in Ukraine is Oschadbank, also known as State Savings Bank of Ukraine. This bank is headquartered in Kyiv and has a total asset value of $7.922 billion. It was founded by the government of Ukraine on May 21, 1999, when the Cabinet of Ministers decided to open the bank as a joint-stock business. Prior to this move, it operated as the State Specialized Commercial Savings Bank. Since 2015, it has been classified by the National Bank of Ukraine as a Systemically Important Bank. As a government-owned institution, deposits made here are guaranteed by national law in case of bank closure. Today, Oschadbank has 3,650 branches, and 2,850 ATM’s.
Ukreximbank, also known as the State Import-Export Bank of Ukraine, is the third largest bank in the country with a total asset value of $6.04 billion. Like the previously mentioned financial institutions, this bank is also state-owned. It was founded on January 3, 1992, has its headquarters in Kyiv, and is classified by the National Bank of Ukraine as a Systemically Important Bank. In addition to its import and export functions, Ukreximbank serves as the government financial actor. In this role, it provides and borrows loans from foreign financial banking organizations. This bank has reported losses in both 2014 ($446 million) and 2015 ($561 million). In 2015, its eurobonds were due for repayment, however, the administration requested an extension in order to meet the requirements for an IMF loan request. Today, Ukreximbank has 83 branches and 692 ATMs.