Banking Funding Trends in Q4 2025
The final quarter of 2025 saw positive developments in bank funding, marked by an influx of deposits from both households and businesses, alongside an overall increase in capital volume. A recent bank survey indicates that wholesale funding growth was primarily concentrated in a few large institutions. Concurrently, the average cost of funding rose across the board, with the most significant increase observed in the cost of business capital.
Outlook and Challenges
The share of foreign currency funding has declined for three consecutive quarters. While capital volume expanded throughout 2025, the cost of that capital continued to climb. Financial institutions anticipate receiving recovery project financing, particularly from the European Union and international financial organizations. This context is crucial as the sector navigates post-conflict reconstruction and economic stabilization.
- Banks forecast a decrease in borrowing costs.
- A further increase in capital volume is expected throughout 2026.
- Profitability will remain a key determining factor.
However, potential constraints on capital growth include shifts in regulatory requirements, macroeconomic conditions, and risk appetite. Banks also predict a future decline in the cost of capital.
These trends point to a stabilizing banking system and enhanced financial resilience amid ongoing economic uncertainty. The declining share of foreign currency funding may reflect growing confidence in the national currency and the stability of the domestic market. Furthermore, the anticipated funding from international partners is poised to play a vital role in driving economic recovery and facilitating investment projects.