Where can I carry money during times of instability. TOP-20 of the most reliable banks in Ukraine
Cleaning the banking system has significantly narrowed the number of banks that can be trusted with savings today. NV together with the investment company Dragon Capital has compiled a rating of banks that you can trust in shaky times.
According to the results of the crisis of 2014, the rating leader has not changed - it is still the state Oschadbank. First of all, this will be explained by the support that the state provides to the financial institution both in the form of contributions to the capital of over UAH 9 billion and a 100% state guarantee of deposits, which competitors cannot boast of. The top ten also included state Ukrgasbank and Ukreximbank. And here the most important thing is the support of the shareholder, which inspires hope that these banks will not be allowed to go bankrupt.
The government represented by the Ministry of Finance is so powerful in supporting state-owned banks that representatives of the National Bank even have to explain to officials that it is not necessary to inject such an amount of funds into the banks' capital. This can have a negative effect for the entire system - it is highly undercapitalized, and unequal competitive conditions for other players may develop. Investors will simply flow into state-owned banks, and this will hit private institutions.
The remaining members of the top ten are banks with European capital. This year Raiffeisen Bank Aval even squeezed Ukreximbank from second place. The newcomers to the rating were Ukrainian “daughters” of large transnational structures Citibank and ING Bank, who work in the corporate segment. Deposits there can only be opened by legal entities - and for this reason these two banks have not previously participated in the ranking. However, now reliable banks are worth its weight in gold, and experts decided to include them in the list.
Banks with 100 percent Ukrainian private capital were not in the top ten at all. In connection with the crisis and the war, they found themselves in the most difficult situation. Owners of local institutions have much less ability to maintain capital compared to international banking groups and even Ukrainian state-owned banks.
As we thought
The place in the rating was determined by the investment company Dragon Capital, based on the amount of points that the bank received on the basis of the following indicators:
- Capital adequacy - reflects the stock of equity to cover potential losses from activities.
- Liquidity - reflects the ability of the bank to fulfill its obligations without delay.
- Sustainability of funding - the ratio of loans to deposits, diversification and stability of sources.
- Shareholder support - belonging to a reliable business group (or public sector) significantly increases the chances of additional financing in case of crisis situations.
- Confidence of depositors - reflects the dynamics of population deposits.
- Quality indicators - transparency of the bank, balance of risk management, reputation.
Dragon Capital data.