Bank promised to reduce interest rates next year

The increase of confidence in the banking system has a positive effect on the maturity of its resource base. The share of long-term deposits in their total volume in January-October 2013 has increased by 5.6 percentage points – to nearly 42%.

This year, banks lend more active than in previous years. Thus, within 10 months, total amount of loans to businesses and citizens, according to the banks’ balance sheets, has increased by 56 billion hryvnias, or 7.2%. A substantial portion of loans is invested in the real sector of the economy – 76% of the banks’ loan operations. This was said by the head of the National Bank of Ukraine Igor Sorkin, the "RBK Ukraine" referring to the "Interfax" reported.

"Currently, banks have the necessary level of resources for productive lending. With the support from the NBU, the level of liquidity was a third higher than that in the last year. This allowed banks to plan active transactions. On the other hand, in 2013, the level of interest rates on the interbank market was still low – 3-4% compared to 10-11% in the corresponding period in 2012," – he said. 

Sorkin also added that the policy of the National Bank in 2013 and 2014 will be used to reduce interest rates and increase lending to the economy in order to boost economic growth.

Source: RBC-Ukraine , ZN, UA