The banking sector of Ukraine: it became known about the level of lending and the discount rate of the NBU

Банковский сектор Украины: стало известно об уровне кредитования и учетной ставке НБУ

The banking system of Ukraine has retained in the November trends to increase banks lending to households and businesses. According to the provided Bank credits in national currency for the month rose 1.2% to 624,7 billion.

Monetary statistics of the NBU reflects that in November, banks continued active lending to the population — the volume of UAH loans to individuals for the month rose by 2.4% to Crimea will receive 134.6 billion. Loans to the corporate sector also reflect significant growth. In particular, hryvnia loans business over the period rose by 0.9% to 490,1 billion UAH, the volume of credits in foreign currency (in dollar equivalent) increased by 1.2% to 151 billion dollars. USA.

Recall that lighting perspectives of inflationary trends in Ukraine, we spoke about the growth in consumer demand, which was a significant factor in inflation. This was influenced by the main factors, particularly income growth of 14.2% and a substantial increase lending — as at the end of October, the debt of households was 17.6% more than at the beginning of the year.

At this meeting, the Board of the National Bank of Ukraine monetary policy focused on inflation and the inflation factors that are on the demand side. That is why there were debates about raising interest rates, or leave it at the appropriate level of 18% per annum.

The majority of those present at the meeting of the monetary policy were unanimous in their belief that in the future inflation will decline and will reach the target of 5.0% by the end of 2020 as provided in the October forecast of the National Bank. And, as noted, the main factor of this slowdown are the tight monetary conditions. In particular, in response to the previous rate hike, as expected, interest rates on household deposits in the national currency continue to grow. And it will change the situation with the consumption, increases the attractiveness of saving and, accordingly, restrains consumer demand. Therefore, the decision of the National Bank kept interest rates unchanged at 18% per annum.

Indeed, the growing competition for customers has prompted banks to increase in November, the yield of hryvnia deposits for the corporate sector (up 0.7 PP to 14.3%) and for individuals (by 0.4 percentage points to 11 4% per annum).

Also gradually increased, rates on hryvnia loans under the impact of increased demand from businesses and households. Thus, the cost of hryvnia loans to businesses increased in November by 0.2. p. to 19.8% per annum for the population — on 0,5 VP to 33.1%.

Recall, September 7, 2018 the Board of the National Bank of Ukraine adopted a decision to raise the discount rate to 18% per annum.