Resilience of the Financial Sector Confirmed for the Eighth Consecutive Time

Survey on Systemic Risks in the Financial Sector

According to НБУ: For the eighth time in a row, a survey involving top executives from major banks and non-bank financial institutions has confirmed the sector’s ability to withstand major adverse events. The survey, conducted in May, shows that the current state of the financial sector is rated as satisfactory or good, although the share of negative assessments has slightly increased.

The overall risk level is considered moderately high or medium. The war with Russia remains the primary source of systemic risk. For the first time, the risk of fluctuations in global commodity prices has been added to the list of the most significant threats. Since the end of 2023, the quality of legislation and the tax system has consistently ranked among the top ten risks. The risk related to the quality of human capital in the financial sector, which had been among the top five risks since May 2024, has now dropped to seventh place.

Key Takeaways on the Financial Sector

These results indicate that Ukraine’s financial sector is capable of adapting to the challenges it faces, particularly in the context of war and global economic shifts. The increase in negative assessments may signal the need for continued monitoring and measures to mitigate risks tied to external economic factors and the domestic political situation.

It is important to note that the quality of legislation and the tax system, as well as human capital, remain critical factors for the stability of the financial sector.

More detailed survey findings are available in the comments.

In light of the recent survey results, it's crucial to examine how the financial sector is preparing for potential challenges ahead. For instance, the upcoming stress-testing scenarios for banks in 2025 will provide further insights into the sector's resilience and ability to navigate systemic risks, particularly amidst ongoing geopolitical tensions and global market fluctuations.