Without a sound banking system, there will be no economic growth

Without a sound banking system and affordable lending, Ukraine will never achieve economic growth, the head of the VR Committee, Serhiy Rybalka said
Date: May 19, 2016

Without a sound banking system and affordable lending, Ukraine will never achieve economic growth, the head of the VR Committee, Mr. Rybalka said.

These were the words of the MP Serhiy Rybalka who inaugurated the All-Ukrainian Scientific and Practical Forum "Strategy for the Development of the Banking System of Ukraine."

The initiator of the Strategy, the chairman of the Verkhovna Rada Committee on Financial Policy and Banking Serhiy Rybalka predicted: without really effective reforms in the economic, financial and banking areas, Ukraine is doomed to remain bogged down in the economic dire straits. The MP said this at the opening of the two-day all-Ukrainian scientific and practical conference, which was held this week in Kiev.

Serhiy Rybalka pointed out that over the past 25 years Ukraine has been among the worst economies worldwide: the domestic economy shrank by almost 45%, as compared with the world's economy which grew almost 2.5 fold.

"Our country needs a common economic strategy that would integrate the industrial, trade finance and regional policies into a single reform plan for 5-10 years. One of the main objectives of the Strategy is to direct all efforts of the government on revitalizing economic development and modifying the structure of the economy. More importantly, the banking sector should become a nurturing ground for national production," Mr. Rybalka said.

According to the MP, the importance of intellect and technology in the modern world is growing by the day. And the major reason for the Ukrainian record economic downslide is precisely the country's accelerated dive towards the status of a raw materials-oriented economy.

"Without a sound banking system and affordable lending, Ukraine will never achieve economic growth. It is obvious that, without the development of industry, growth of salaries on a national level, the financial institutions will not be successful," concluded Serhiy Rybalka.

The head of the profile parliamentary committee stressed in his speech that it is crucial for his partners who have supported his endeavor of creating the Strategy to enlist also the support from among professionals, scientists and experts and, ultimately, from the entire society to discuss the Ukraine's future. Also, Mr. Rybalka stressed that he and his supporters rely in this work exclusively on market mechanisms.

As reported, on April 18 the Verkhovna Rada Committee on Financial Policy and Banking presented the Draft Strategy for the Development of the Banking System of Ukraine for 2016-2020 for public discussion and finalization. The basic draft was created by a task force of monetary, currency and banking regulation experts, banking professionals, representatives of public and scientific organizations. The draft strategy outlines the ways of overcoming the crisis, creating prerequisites for the stability of the national currency and the banking system, increasing confidence in the regulator and building a system of incentives to accelerate economic growth.

The priorities to be pursued in the next four years include changes in monetary policy towards promoting economic growth, transformation of the state banks into drivers of economic growth, stimulating the export of high tech products and high level services, attracting foreign capital and increasing the effectiveness of international assistance.

The objectives of the strategy are to improve the quality of the National Bank's policy, confidence in the regulator, banking system and hryvnia, development of a competitive market for banking services and stimulation of lending to the real sector of the economy.

The All-Ukrainian Scientific and Practical Forum is held May 19-20 in the premises of the Kyiv V. Getman National Economic University to discuss the draft Strategy.


Source: gazeta.ua
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