Strategy for State Bank Development must primarily answer the question of the main purpose of their existence

Strategy for State Bank Development must primarily answer the question of the main purpose of their existence, – Serhii Rybalka

"Judging from the presentation the Ministry of Finance has shown at the meeting of our committee, as I've already said, it is not a 'Development Strategy', but merely a summary of drafts of strategic plans of certain state-owned banks," he noted.

The Strategy for State Bank Development must contain clear vision of how each of these banks will provide for revival of the economy for the sake of improving people's lives and not only state the necessity of their sale, said Serhii Rybalka, MP, former Chair of VR Financial Policy and Banking Committee, commenting on the information about approval of the document regarding the future of the banks owned by the state that was approved by the government.

"The Strategy for State Bank Development, first and foremost, must provide an answer to the question about the key strategic goal of their existence. They must primarily implement the state economic policy. Therefore, we need a clear vision of how each of these banks will provide for revival of the economy for the sake of improving people's lives," he wrote on his Facebook page.

He added that the documents that the Ministry of Finance provided for consideration to the financial committee couldn't be called 'Development Strategy'.

"Judging from the presentation the Ministry of Finance has shown at the meeting of our committee, as I've already said, it is not a 'Development Strategy', but merely a summary of drafts of strategic plans of certain state-owned banks," he noted.

Rybalka added that judging from the available information, the main goal of reforming the state banks, proposed by the ministry, is their sale until 2020-2022, while no answers have been offered for the critical questions.

"Indeed, presence of the state in the banking market needs to be reduced! But that alone cannot be the main goal! At that, it is not quite clear how the Ministry of Finance plans to tackle a critical issue of the highest level of bad loans, which in the state banks exceeds 70%! What should be done with it? How will such banks turn a profit?" asks Rybalka.

He added that besides the terms of sale, he proposed to include in the Strategy the objectives, tasks and authorities of the special subdivision for management and control of state banks, which the Ministry of Finance wants to set up.

He also believes it is necessary to envisage the specifics of interaction between the state banks and the State Export-Credit Agency for building the support system of Ukrainian high-tech export, and with UkrPoshta, which, for example, can ensure involvement of residents of the most remote areas in the banking system.