Analytical Department of the NRA Rurik reviewed statistical information on the banking system of Ukraine as of 01.04.2011, the analysis yielded the following conclusions. In the I quarter of 2011 nor the banks have been granted NBU license for banking operations, as well, none of the bank has not been revoked license. As a consequence, as of 4/1/2011, the license of the National Bank of Ukraine to perform banking operations had 176 banks. 18 institutions are being liquidated, and 5 banks (Rodovid Bank "Nadra", "Vladimir", "Sotskov Bank and Bank Capital") in the beginning of the II quarter has continued to operate the interim administration. Resolution of the Board of NBU № 143 of 10.05.2011, with 11.05.2011, the revoked license and initiated the liquidation of another bank - OOO DialogBank. From 2011 the regulator has increased the requirements for established banks. Enhanced requirements regarding the financial condition of the founders of the new bank: National Bank will refuse to register with evidence of loss-making activities over the past year at least one co-founder, as well as in the case of excess of liabilities to other creditors over the assets created by banks (excluding funds invested in authorized capital other legal entities). Network of bank branches by the end of I quarter 2011 totaled 678 units, 63 fewer than at the beginning of the year. The main branches of the reduction was due to their transfer to the outlets. According to analysts NRA Rurik, the reorganization of the territorial network will enable credit institutions to save on administrative costs. To create a new bank branches since 2011 to fulfill two key requirements: to break-even basis over the past six months, have developed systems of internal control and risk management, which must be audited in the NBU. In the I quarter of 2011 there has been little structural change in the distribution of assets of the Ukrainian banking system by groups of banks according to the classification of the NBU, which is associated with changes in the size of the assets of individual banks. Analytical Department of the NRA "Rurik" notes a declining share of bank assets the 1 st and 2 nd groups at -0.2 percentage points (Up to 66,5%) and -0.5 percentage points (Up to 17,6%), respectively, as well as increasing the share of bank assets the third and 4 th groups at 0.1 percentage points (Up to 6.5%) and 0.6 percentage points (Up to 9,4%), respectively. The assets of the banking system in the I quarter of 2011 continued his vЂ <vЂ <growth. According to the results of the quarter their size has increased by 5.6% to $ 942.0 bln. As of 01.04.2011, the assets include items outstripping growth rates continue to demonstrate securities (10.9%) and cash (7.8%). The carrying value of the loan portfolio (net of them formed by reserves) increased by only 1.8% to 622.0 bln. As a result, the share of loans in total assets during the I quarter decreased by 2.3 percentage points up to 62,5%. Analytical Department of the NRA "Rurik" believes that the banking system of Ukraine continues to be characterized by excess liquidity and lack of active loan clients. According to analysts NRA Rurik, the main factors that hinder the resumption of lending to the economy are inefficient judicial system of Ukraine and the lack of long-term bank hryvnia resources. Ways to solve the first problem are outside of the banking system. In the direction of solving the second problem of the NBU and commercial banks have already taken certain actions which are analyzed below. According to the results of I quarter was an increase of the coefficient of unfunded credit investments by 0,4 percentage points up to 19,0%, as evidenced by the preservation of low quality loan portfolio of the banking system of Ukraine. In this regard, at the beginning of II quarter 2011 in the media and among experts of the banking system was discussed the possibility of establishing the bank's troubled assets, the basis of which must be Rodovid Bank, whose mission will be to improve the quality of credit portfolio of the banking system, which should positive influence on its further development. Analysts NRA Rurik note that such a move could improve the quality of the total loan portfolio of the banking system. At the same time it is associated with a large number of legislative and economic difficulties, so the initiators of this project will not be able to implement it quickly, which requires the current situation in the banking system of Ukraine. Balances in the accounts of physical persons in banks of Ukraine for I quarter of 2011 increased by 5,8%, indicating the gradual restoration of public confidence in banks. However, remains relatively high share of demand deposits (38.2%) and deposits for up to 1 year (29,8%). The predominance of short-term deposits, together with long-term withdrawal of investor funds, making the resource base that is formed at the expense of funds, unstable, and restrains the issuance of long-term loans by banks in Ukraine. Also, given the events of late 2008 - early 2009, when the population panicked prematurely removed the deposits, the NBU has been initiated discussion on early withdrawal of bank deposits, the results of which proposed to the legislation of Ukraine the following changes: - to establish that in case of appeal to the depositor with the requirement Extradition contribution before the deadline specified by the contract term deposit, the bank must give the contribution within 30 days of treatment, but not later than the date established by the contract - the right to grant to the National Bank of Ukraine to introduce a temporary moratorium on early withdrawal of bank deposits in case of signs Crisis on the criteria defined by law. According to analysts NRA Rurik, such changes will make it possible to protect the rights of both parties: investors, as the bank within the statutory period will be required to give money to the depositor on demand, and banks, by preventing the destabilization of the banking system in the event of a mass of uncontrolled withdrawal of funds from bank accounts. According to the results of I quarter continued to increase the equity capital of the banking system of Ukraine due to increase in the authorized capital of individual banks. The total volume of banks' own capital is less than the authorized capital, which is explained by a significant loss ratio of banks in 2009 - 2010,. In general, for I quarter 2011 equity capital increased by 710.0 mln. (Or +0,5%) compared with its value based on the results in 2010 for the I quarter 2011 cumulative loss of Ukrainian banks have decreased by 20 times compared with the I quarter of 2010 and amounted to 210.7 million UAH. The most unprofitable banks remains Rodovid Bank (-392 970 000 USD), the most profitable - Privatbank (434.65 mln.) As a result I took the quarter reduced the costs of payments to the reserves (- 38,7% in comparison with the same period in 2010), and an increase in administrative expenses (48.8%), which, according to analysts NRA Rurik, indicates a gradual "cleansing" of credit and investment portfolio of the banking system of Ukraine from bad debts and increase the territorial network of banks, which should become a springboard for increasing the volume of lending. In the direction of acceleration out of banks into the lucrative activities NBU was introduced by Resolution № 593, which entered into force in early 2011, this document allows banks to transfer credit borrowers with a prolonged and stable debt service to a higher category, thereby reducing the generated reserves and hence , the total amount of expenditure. According to the results of the analysis of credit ratings of Ukrainian banks, the analytical department of the NRA Rurik established that on 01.05.2011, only half of the banks (52,3% of total) had credit ratings. Despite the possibility of achieving competitive advantage, the vast majority of small banks (IV group on the classification of the NBU), unfortunately, does not use credit rating as a tool to confirm the financial reputation of the borrower and reduce the cost of their services (only 32.8% of Group IV banks have long-term credit ratings). The overwhelming majority of banks' credit ratings of Ukraine maintained at uaBBB (54,4% of total).
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