The banking sector in Ukraine has flourished during the past four years. Banks were passed over in the scramble to get rich during the 1990s and a series of effective banking reforms built the foundations of a relatively solid financial sector. Now that the economy is taking off, the banks are reaping the rewards.
The sector remains small and undercapitalised but, on the back of ballistic economic growth, banks’ capital is rising by about 60% a year, going from 2% of GDP in 2000 to just over one-third of GDP now. Ukraine’s banks have become a real force for economic change.
