The crisis in Ukraine will increase the number of banks with state shareholdings

In 2009 in Ukrainian banking system the percentage of banks with state capital can considerably increase. In the mean time, the banking system will be divided into three strongly pronounced segments. According to LIGABusinessInform, that was suggested by the President of Ukrainian Society of Financial Analysts Yuriy Prozorov.

Prozorov noted that according to his forecast in 2009 all banking system will be divided into three strongly pronounced sectors: the sector of foreign banks’ subsidiary structures, which will “absorb liquidity from the West but only in case if their mother structures do not have problems". Second sector, which can considerably increase its percentage on the financial market next year, will include state banks and banks which will be recapitalized. According to the analysts, this part of the domestic banking system will increase at the expense of “problem” banks redemption. Third sector, in his opinion, will be composed of small banks which will survive due to the fact that they are captive and related to financial-industrial groups and that’s why most probably they will not go bankrupt.

The source: Obozrevatel