Igor MAZEPA: Consolidation is inevitable

 

The Ukrainian banking system is sure to come, though not as fast out of the crisis. And then “it’s waiting for consolidation”, said a member of the Supervisory Board of state-owned Ukreximbank, investment banker Igor Mazepa. He declared it in interview to the Ukrainian media: “the Situation (in the banking system. –Ed.) already close to the bottom. I think it will take another few dozen banks that are either engaged in fictitious transactions, or just as there were banks.”

Igor Mazepa believes that “the banking system now does not perform any functions of the savings, no savings, no investments, not conducive to the growth of the economy, and its only function is payments, where banks earn some fee income”.

Investment banker connects it with the recent influx of investors wanting to withdraw their deposits. Igor Mazepa said still stabilize the domestic financial system and the absence of devaluation. In his opinion, as a result of the stabilisation of Ukraine’s economy will start reformatting the banking system.

“Not all problem banks will have time to leave the market, but the majority will leave. We will stay in the banking system, which would be dominated by the state – they have almost unlimited access to capital, their market share will grow”, – stressed the banker.

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