The second internal problem of the Ukrainian banking sector is the excessive
cohesiveness of the banking institution with its shareholders (captive banks).
Considering the "big bank cleaning" of 2014-2016, one can say that in part this problem
was solved by the regulator. Of course, one can criticize the regulator for slowness and
selectivity in this matter, but in general the clean-up mechanism launched helped to
strengthen the NBU's supervision policy. Banking institutions have repeatedly warned,
and the opportunity to eliminate the problem by an internal set of activities existed
before the NBU began withdrawing banks from the market because of the opaque
structure of ownership or the failed values of standards N7, H8 and H9.
The third internal problem of the banking sector was generated by a distorted
reality (the distortion was provoked by the first two problems listed above and the
irresponsible approach of many banking institutions) and technological progress
(which encouraged banks to act, the essence of which bankers often did not understand
themselves). That is, a serious problem in the sector has been a lack of understanding
of how to properly apply advanced technologies, as well as "archaic" thinking of
bankers.
Today in Ukraine there are very few high-tech banks. There are very few classical
retail banking institutions in the country. The high cost of entering the segment, the
need to scale the business widely and the difficulties with the technological architecture
are usually deterred by bank investors.
The history showed that advanced information technologies and retail solutions
were not a common panacea in the banking business. Realities are such that for today
in Ukraine the niche of retail high-tech banks is empty. So, there is a free market
segment, and unearned profit.
The Ukrainian banking market is expected to revive lending. The world history
of finance is well illustrated by several facts:
• Economic growth is almost impossible without attracting credit resources in
investment activities, becoming a key driver of business cycles;
• Economic growth can be achieved both through exports and through domestic
consumption. But usually a stimulant is needed for domestic consumption, since the
growth dynamics of real incomes does not allow us to quickly increase the level of
domestic consumption, and this stimulator is in most cases again a credit resource.
Very often it is possible to hear loud statements that one or another bank investor
is going to build a new generation retail bank or the first digital-bank in Ukraine. At
the same time, these investors do not understand the realities of the market, the axioms
of the banking business, nor the colossal resources (both financial and human) they
will need for a retail technological breakthrough in the banking sector. Although, of
course, today is a convenient and ever more appropriate time to launch such a project
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