Ukraine may be covered by a new bankfall – which institutions are at risk

In Ukraine, on June 3, Megabank was declared insolvent, and this caused great concern among economists and ordinary Ukrainians who are worried about their deposits in other financial institutions.

About whether to wait for a new “bankfall” in Ukraine and which institutions are at risk, experts told UBR.ua.

The Association of Ukrainian Banks (AUB) announced that under the threat of bankruptcy are about 20 bankswhich is almost a third of the total.

And the reason for a possible bank fall there is considered a record increase in the NBU discount rate from 10% to 25%.

AUB President Andriy Dubas said that before the rate increase, banks took refinancing from the NBU at 9% and invested this money in government bonds at an average of 12%. Now the National Bank will have to return the money at 27%, that will hit hard.

What are these banks?

Associate expert of CASE Ukraine, former deputy director of the financial stability department of the NBU Evgeny Dubogryz believes that AUB meant private banks, which have the largest share of refinancing NBU in all funding.

“No one knows which bank has what loans and what collateral, this is confidential information. There are, for example, regional banks, for example, Metabank, head office in Zaporozhye. No one knows who he gave loans to, Zaporozhye is near the front,” says the expert.

You can count quite a few institutions that have a large share of liabilities to the regulator and promptly raised interest on deposits as of May 1. That is, these are the banks that now really need money for quick repayment of refinance loans taken.

According to experts, their list included:

• RVS Bank (RwS bank);
• CIB (ComInBank);
• Vanguard;
• Bank Sich;
• Industrialbank;
• Crystalbank;
• Sky Bank;
• Alliance;
• MTB Bank;
• “Ukrainian capital”;
• Radabank;
• Creditwest Bank;
• The globe;
• Motor bank;
• Ukrbudinvestbank;
• AP Bank (Agroprosperis Bank);
• Taskombank.

This does not mean at all that all these financial institutions or even several of them will become bankrupt, but it indicates that after raising the discount rate they began to experience difficulties with income, and in war conditions this can turn into big problems.

Segodnya wrote earlier about how Russian banks deprive their clients of their last money, and told what to do if you do not have money to pay on a loan.