On September, 12th, 2011, RA “Standard Rating” has published the results of bank sector openness rating in the official edition of Gosfinuslug “Ukraine revue business”. The Agency assessed the degree of openness of 53 banks operating in Ukraine, including those with participation of foreign capital.

The trends revealed by the Agency within the limits of the rating allow drawing the following conclusions:

The amount of information disclosed by the Ukrainian banks is not sufficient for construction of the system of analysis aimed at early warning on bank defaults. All the necessary information is published by the banks at the time when it becomes already irrelevant, therefore it is not seen as possible to construct early warning system in Ukraine based on open data only. It considerably complicates execution of analysis by depositors and investors in bank bonds and brings advantages to the banks with foreign capital which parent structures provide more information on their activity.

The area of disclosure of specific emitter information by banks is not at all or poorly controlled by state structures, therefore the banks are not endeavoring in informing consumers on their financial condition and limit themselves to formal execution of the legislation. It results in that only well knowledgeable persons and professional players of financial market can understand bank market trends, and the banks get the opportunity to use mass-media for manipulations with the opinion on the  state of affairs in the own bank, and sometimes even in a competitor bank.

The exemplary functioning of information disclosure systems in EU countries, namely in France and Germany, allows informing the consumers of foreign banks services in Ukraine on the state of affairs in parent bank holdings, that considerably eases the task of calculation of the level of external support by shareholders. The information published by foreign bank holdings is of better quality and is trusted by depositors and investors.

See more details of the research on the level of openness of Ukrainian banks in the official edition of State Financial Services “Ukraine Business Revue” no. 36 (1105) of September, 12th, 2011, or on the Web-site of RA “Standard Rating” (Ukraine).

The research, PDF

Press release, PDF