By KYIV. Dec 1 (Interfax-Ukraine) – The balance of positive responses from financial sector participants to the question about its current state in November 2023 has strengthened since the previous survey from 11% to 26%: more than half of the respondents rated it as good and very good, and only 6% as bad, reported the National Bank of Ukraine (NBU) based on the results of a six-month survey on systemic risks of the financial sector.
“Half of the respondents reported that the condition of the financial sector had improved over the past six months, while others said that it had not changed. Not a single survey participant reported a deterioration in the condition of the financial sector, although in May there were 10%,” the regulator stated.
At the same time, the expectations of heads of financial institutions for the upcoming first half of 2024 have noticeably worsened: the share of pessimistic respondents increased to 32% from 3% in May. The number of pending positive changes during this period has correspondingly decreased. Thus, the number of those who believe that the state of the financial sector will be satisfactory is 50%, and another 18% answered that it will be “good.”
As a result, the balance of responses from “plus” 13% dropped to “minus” 7% over six months.
“Assessments of the overall level of risk in the financial sector have slowly improved. The share of respondents who considered its level high or very high decreased from 58% to 50%. Another half of the heads of financial institutions surveyed consider the level of risk in the sector as a whole to be average,” the central bank noted.
It is indicated that for the third time in a row, financiers have improved their assessments of resilience to significant negative events: 94% of respondents rated the sector’s resilience as average or above. However, the overall balance of responses from the record value achieved in the first half of 2023 since the beginning of the survey in May 2018 has decreased by 1 percentage point – to 18%.
According to the results of the current survey, the main source of risk remains the war with Russia with an indicator of minus 81% versus minus 77% in May.
Following this, the list of main risks, as in the first half of the year, was headed by the factor of corruption, the activities of law enforcement agencies and the judicial system with an indicator of minus 41%, the risk of fraud and cyber threats – “minus” 34%.
According to the National Bank’s data, the top three main risks were completed by the factor of the political and social situation in the country: the balance of responses was “minus” 29%, while in May this figure was only “minus” 11%.
