What needs to be changed in bank's business models

after the crisis?

2015 = crisis ?

2015 the “most difficult year in our history”

but...

"We want to create a new country, free from corruption, with independent courts and the rule of law. We want to

build a new climate for investment"

“Without a substantial new effort to invigorate governance reforms and fight corruption, it is hard to

see how the IMF-supported program can continue and be

successful...

‣ Adverse geopolitical situation

‣ Adverse global economic development

‣ Crises in domestic politics

‣ Threat of losing donors’ support

2016 = worse crises

What are we going to see in 2016 in the banking

sector?

What need to be changed in bank's business models

after the crisis?

2016 = battle & temptation

‣ Battle to survive

‣ Minimum capital requirement

‣ Asset quality review for TOP 20-60

‣ Battle to gain

‣ Redistribution of market between state-owned banks and private banks

‣ After recapitalization temptation to grow balance sheet

‣ Rush into agricultural lending

‣ Search for profitable FCY assets

‣ Increasing the interest rate differential between USD and UAH