Commercial Banks

The Ukrainian banking system has remained relatively underdeveloped compared to other transition economies in the region. Its aggregate bank capital as a percentage of GDP is only one-eighth of the average for the transition economies of Central and Eastern Europe. Most local banks are under-capitalized as their loan portfolios are burdened with bad debts, the proportion of which increased from 20% in early 1997 to over 30% in 1999.
Table: Size of Ukrainian Bank System - Bank Capital as a % of GDP, 1998

There are over 160 commercial banks operating in Ukraine, eight of which are foreign: Credit Lyonnais, Societe Generale, Citibank, ING Barings, CSFB, Creditanstalt, Raiffeisen, Rabobank (Kiev International Bank). The number of foreign banks has been growing rapidly after restrictions on entry were lifted in 1998.

Table: Top 20 Ukrainian Banks by Assets (as of Jan 1, 2000)

Assets,
UAH mil.
1st Tier capital,
UAH mil.
Pre-tax profit,
UAH mil.
Privatbank
3,830.8
239.6
21.4
Aval
2,062.4
145.9
23.0
First Ukr. Intern’l Bank
1,422.5
244.7
56.9
Brokbisnesbank
687.7
94.9
N/A
Slavyansky
610.1
231.7
83.3
Ukr. Credit Bank
506.4
58.3
40.1
Nadra
395.0
52.5
N/A
Finance & Credit
433.3
35.0
7.7
MT-Bank
392.9
92.0
33.4
Creditprombank
475.6
79.3
6.6
Pravex Bank
357.6
71.5
N/A
Ukrsibbank
306.6
122.3
9.1
Credit Lyonnais Ukraine
253.4
33.5
7.1
VA-Bank
303.9
56.2
7.5
Credit-Dnipro
259.6
36.8
N/A
Raiffeisenbank
230.5
24.6
N/A
Western Ukr. Comm. Bank
261.5
58.0
N/A
Magebank
185,9
34.1
N/A
Premier Bank
174.2
43.3
N/A
Morskoy Transport Bank
189.1
42.4
N/A

Source: Association of Ukrainian Banks, Reuters.

Table: Share of Different Kinds of Credits in Total Credit of Ukrainian Banks, %, Q2 - 1999