OREANDA-NEWS. Anrdiy Zymukha, Head of Strategic Planning Unit, JSCIB "UkrSibbank": With foreign players’ entering financial market, banking system of Ukraine experiences an inflow of new capital and new technologies, reported the press-centre of JSCIB UkrSibbank.

For Ukrainian customer it implies the reduction of loan rates, more qualitative and wider range of banking products and services. From the point of view of the impact of this process on the gradual slowdown of the banks’ performance in the acquisition of individuals’ and legal entities’ deposits, it is obvious that term deposits profitability curve is likely to maintain falling tendency. Ukrainian customers got used to rather high level of profitability, however, a term deposit will eventually evolve from earning tool into saving instrument. Banks will migrate from deposit schemes to saving programs.

This is the same product but positioned in a slightly different manner, a product used by most of Europeans. It is savings and accumulation and not augmenting that step-by-step will become key motives to guide the depositors. Such saving programs will give scope for deposit growth rate increase, and above all, for future acceleration of cash flow from individuals to reliable commercial banks.

If we consider all pros and cons, it is of no question that foreign capital is indispensable for the countries with new banking system being established, including Ukraine. Liberalization on foreign capital access to banking sector will trigger investments intake into Ukrainian industry and will spur its development. Still, the process of derestriction of the banking market access should be accomplished progressively and consistently regulated by the state, thus contributing to risk mitigation. After all, increase of foreign capital share in Ukraine’s banking system will multiply the finance volumes of from the part of external investors. It is driven by investors’ ambition to derive profits on such high-yielding market as compared to European standards.

Fund-raising methods may be as follows:
Issue of bonds which will be bought out by the same investor;
Syndicated loans with respective investor’s organization being a lead-manager;
Issue of other securities supported by investors;
Deposit certificates placement, etc.