The banking industry in Ukraine has been beset by conditions so dire—from rampant fraud in its main banks, threats of war to foreign capital flight—that some thought it would never fully recover. Yet with help from international partners, the government, under the leadership of the National Bank of Ukraine, is making impressive strides toward putting its banking sector back on solid, fruitful ground.
Much has been made of Europe’s struggling banking sector since the turn of the decade. In October, for instance, the International Monetary Fund (IMF) reported that across the world, banks that were in charge of approximately $12 trillion of assets will continue to remain vulnerable, even if a global economic recovery takes hold.
There is much rhetoric around the opportunities provided by emerging markets. And there is plenty of discourse around the fact that banks are de-risking and retreating from such areas. The fact of the matter is that some regions of the world are riskier to operate in.
After a heavy recession brought on by the military conflict with Russia, Ukraine’s economy and banking system now appear to be firmly on the mend. Indeed, things have improved to such an extent that by the end of May, Moody’s had revised its outlook for Ukrainian banking from negative to stable.