Bank Funding Survey Results
A survey of Ukrainian banks on their funding for the first quarter of 2026 reveals significant shifts in the volume of corporate and household deposits, as well as changes in the cost and maturity of funding. The data indicates a decrease in corporate deposit volumes, while household deposits saw a slight increase. This points to a shift in the financial behavior of businesses and the general public, reflecting broader economic trends.
The average cost of funding rose, with the cost of household funds also increasing. In contrast, the cost of business funds saw a slight decrease, while the price of wholesale funding remained unchanged. These fluctuations highlight divergent trends within the funding market, which could influence corporate financial planning. The Ukrainian banking sector continues to navigate a challenging post-war economic landscape.
Funding Maturity and Capital Dynamics
Regarding funding maturity, it increased over the year, which may signal a rise in banks' long-term liabilities. Over the past 12 months, the total capital of banks grew, yet for the first time since the end of 2024, banks recorded a decrease in the cost of their capital. This data reflects the financial sector's ongoing adaptation to volatile economic conditions.
The changes in corporate and household deposit volumes illustrate the overall state of financial activity in the economy. The decline in corporate funds may suggest reduced business investment, potentially affecting future economic growth. Conversely, the rise in household savings could indicate increased consumer caution with spending amid uncertainty. These trends are likely to have a lasting impact on the funding market and corporate business strategies.
As the banking sector grapples with fluctuating funding dynamics, it's essential to consider the broader implications for the financial landscape. A recent report highlights that the non-banking financial sector has reached a historic low in asset share, which may further influence banks' strategies and the overall economic recovery. Understanding these interconnected trends will provide valuable insights into the future financial environment.