With this level of distrust in the effectiveness of modern tools of monetary policy of the NBU may not be effective against a wide range of market participants.
The balance of trust/distrust of the NBU in June 2018 inclined towards mistrust, which has made 62,1% of the population. Similar, but slightly lower is the rating of trust of the banks themselves (-69,6%). Confirm these data and foreign organizations, in particular USAID. In this case, all studies, these indicators during the 2016-2018 significant positive trends do not show.
About this in his article for ZN.UA write Eugene Bagel and Yuliya Shapoval, Institute of Economics and forecasting of NASU. In their opinion, with this level of distrust in the effectiveness of modern tools of monetary policy of the NBU may not be effective against a wide range of market participants.
“Small business and the population prefer to stay away from the banking market, and this leads to its compression. For example, the volume ratio of banks ‘ assets to GDP of Ukraine only during the 2016-2018 decreased from 79 to 61 per cent; loans from 49% to 35%, deposits – from 36 to 30%, including deposits of natural persons – from 20.8 to 17.1 per cent, experts note. – According to estimates, up to 80 billion dollars. USA Ukraine remains outside banks. A significant proportion is in the hands of the population. Excluding this link from the financial-credit mechanism, the economy loses a powerful resource for growth, and the number of participants of the banking market is shrinking. Among them remain largely the state (55% of the banking market of Ukraine), large private banks (top-5 private banks owned 20% of the market), and among the customers are large enterprises, close to the banks or to the state.”