At its meeting held on 25 February, the Financial Stability Council (FSC) heard information about the implementation of measures under the Lending Development Strategy and the Mortgage Lending Development Strategy.
While discussing lending dynamics, FSC members noted the following positive trends:
- rapid growth in lending for two consecutive years, in particular, a one-third increase in net hryvnia loans to businesses and households in 2025, and higher penetration of loans into the economy
- loans issued on market terms without state support growing four times faster than subsidized loans
- lending conditions being close to prewar ones, in particular market rates of 15% per annum in December for new hryvnia loans to businesses
- banks supporting the restoration of the energy sector and providing financing, since the conclusion of the relevant memorandum, for projects to create generation capacity of about 1.4 GW
- increased lending to the defense industry, in particular the provision of approximately UAH 6 billion in loans under special programs within the framework of the Lending Devel’opment Strategy from the start of 2025
- resumption of lending growth in frontline regions to levels comparable with other regions after a significant decline
- a decline in the NPL ratio to a 15-year low and in the default ratio to a 10-year low.
FSC members also highlighted the important achievements: the healthy and effective banking system that is developing harmoniously and is increasingly capable of financing the economy.
At the same time, taking into account emerging challenges and changes in external conditions, FSC members noted the importance of further efforts to maintain sustainable lending growth and initiated a corresponding update of the Lending Development Strategy and the Mortgage Lending Development Strategy, instructing the FSC Financial Development Committee to provide relevant proposals. The key task for state institutions remains to create the conditions for directing credit support to the most productive areas of the economy.
The participants of the meeting emphasized that, given the persistence of war risks and related challenges, there remains a need to improve and expand financial instruments and mechanisms, particularly long-term ones, to support economic activity.
FSC members noted the importance of a systemic approach to changing the infrastructure for lending development in order to ensure long-term sustainable effects and the ability to promote credit penetration without accumulating excessive risks to financial stability.
As usual, the meeting heard an overview of systemic risks in the financial sector presented by the NBU. According to the overview, risks associated with the damage to energy infrastructure have largely materialized and intensified in recent months, but thanks to recent EU decisions to support Ukraine through 2026–2027, the risk of insufficient external assistance has diminished substantially.
Established by a presidential decree in March 2015, the FSC is an interagency body and a platform for professional discussions on financial stability. The FSC identifies systemic risks and threats to financial stability and develops recommendations in order to neutralize their impact on the financial system.
The FSC meeting was attended by Minister of Finance of Ukraine Sergii Marchenko and NBU Governor Andriy Pyshnyy (FSC co-chairs), Minister of Economy, Environment and Agriculture of Ukraine Oleksii Sobolev, Managing Director of the Deposit Guarantee Fund Olga Bilay, Chair of the National Securities and Stock Market Commission Oleksii Semeniuk, NBU First Deputy Governor Sergiy Nikolaychuk, Deputy Head of the Office of the President of Ukraine Iryna Mudra, NBU Deputy Governor Dmytro Oliinyk, and Deputy Minister of Finance of Ukraine for European Integration Yuriy Draganchuk.