Financial institutions are preparing for rising costs of attracting funds from businesses and citizens
Ukrainian banks plan to increase interest rates on deposits for businesses and the population in the fourth quarter of 2026. Financial institutions also expect an increase in total volumes of attracted funding. This was reported by Minfin citing the National Bank of Ukraine, according to the portal PromPolitInform.
These forecasts were released following a quarterly survey involving 25 institutions that account for 95% of the banking system’s assets. In the third quarter of this year, the total volume of bank liabilities already showed an upward trend, while the average cost of attracted financial resources also increased.
Corporate deposits had the most significant impact on the cost of funding during July-September, with a balance of responses regarding cost at +38%. The similar indicator for household deposits was at +9%, while the costs of wholesale borrowing remained almost unchanged.
Financial sector expectations
For the coming months, banks forecast a continuing trend of rising costs associated with attracting funds. The expected cost of corporate deposits is reflected by a balance of responses of +49%, and for household funds, this indicator reached +32%. Meanwhile, the increase in the cost of wholesale funding sources is estimated at only +8%.
Despite the projected increase in costs, financial institutions plan to increase the volume of liabilities. The highest level of optimism is observed regarding the attraction of household funds — the balance of responses here is +48%. For business deposits, the indicator is fixed at +39%, and for wholesale sources, it is +23%.
External financing sources
More than half of the banks by asset volume plan to expand wholesale funding, particularly through credit programs from international financial organizations. A separate area will be attracting funds for reconstruction projects, including financial support from the European Union.
This strategy is primarily driven by the need to balance the maturities of assets and liabilities, as reported by 35% of respondents. Banks are also trying to increase their total balance sheet volumes and adapt non-price terms to attract new investments.
Regarding capitalization, financial institutions expect further growth in their own volumes, with the profitability of operations remaining the main source. For the first time since the beginning of 2025, the surveyed banks also predicted a possible increase in the cost of capital over the next 12 months.
Photo: Minfin
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