Piraeus Bank executive in Kyiv: “The country’s best defense is economic growth.” How can the economy be developed during the war?

While the financial sector has adjusted to operations under the harsh conditions of the full-scale war and has obtained strong profitability, banks are not lending actively, so they are not driving GDP growth, said Chairman of the Board of Piraeus Bank in Ukraine, Ioannis Kyriakopoulos.

This must change for stronger growth in the future, but how can we get banks to lend money in the future? For now, though, banks continue to provide services, support their networks, maintain operational efficiency and profitability, and build up capital. The accumulated margins support financial stability, underpin the banks’ resilience in the face of further challenges from the protracted war, and pave the way to a full-fledged lending recovery.

During his speech at the UBN Network in Kyiv, Ioannis Kyriakopoulos said that the status of the banking system in Ukraine is quite strong, even when compared to other banks globally in countries that are not at war. The banking sector’s stability and solid profitability has been primarily attributable to the elevated (though falling) key interest rate and the comparatively low deposit rates during this period.