IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Advisory Report on Bank Restructuring in Ukraine

Listed author(s):
  • Hatice Jenkins

    (Harvard Institute for International Development, Harvard University, Cambridge, MA)

Institutional structure of the Ukrainian banking sector is facing major weaknesses. The close supervision and auditing of banks are needed to avoid a possible financial crisis during its transition to the market economy. The existing general mistrust in the formal financial sector is also another issue that the country currently faces. This report discusses the major constraints in financial intermediation in Ukraine and recommends a number of policy actions that may help the country to strengthen the financial intermediary role of its banks. Currently the banking sector of Ukraine is highly concentrated. Due to the lack of competition, banks operate inefficiently with high costs and high profit margins that caused large spreads between deposit and loan interest rates. The findings of this report suggest that the banking sector in Ukraine is not responding to the market forces by adjust the prices in the financial markets. Despite the low liquidity in the banking sector, banks did not increase deposit rates to attract the household savings. Similar to other transitional countries, Ukraine has been given a substantial amount of credit by international assistance agencies to finance private sector investment. These loans provided liquidity to the domestic banking sector and increased the availability of long term credits for investment. It is important to note that the excessive capital inflows may affect the domestic financial prices and the functioning of the domestic markets adversely.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by JDI Executive Programs in its series Development Discussion Papers with number 1997-04.

in new window

Length: 11 pages
Date of creation: Apr 1997
Handle: RePEc:qed:dpaper:259
Contact details of provider: Postal:
Kingston, Ontario, K7L 3N6

Phone: (613) 533-2250
Fax: (613) 533-6668
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:qed:dpaper:259. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bahman Kashi)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.