Under the blow: Do Ukrainian bankruptcy banks threaten through war and crisis

The economic crisis provoked by the war will adversely affect the financial sector for a long time, according to the Government of Ukraine. Ukrainian banks continue to work and even restore the provision of services terminated through the war. But the invasion of the Russian Federation still increased the risks of bankruptcy of financial institutions. This is stated in the draft Law on the State Budget for 2023 (No. 8000).

In particular, the document from the Ministry of Finance states that bankruptcy of banks in Ukraine can start after the war. It is noted that so far measures from the state and the NBU significantly mitigate the existing risks. "But after the end of the martial law and the abolition of the entered protective mechanisms for the banking sector, there is a likelihood of bankruptcy risks of bankruptcy," the document reads.

In addition, the economic crisis provoked in the war will adversely affect the financial sector for a long time, so evaluation of consequences is possible only after macro stabilization. "The NBU expects that most banks will be able to restore capital on their own due to future profits. Others may need capitalization from the shareholder," the Ministry of Finance added. We will remind, on August 9 the NBU Board made a decision on the assignment of JSC "Bank Sich" to the category of insolvent.