Banks forecast a rise in capital inflows from consumers and businesses.

According to a survey of banking market players by the NBU, banks increased their customer acquisition and wholesale funding in the second quarter. The rise in the average cost of funding in the second quarter was mainly due to increased costs in retail funds, while the cost of wholesale funds remained unchanged. Respondents expect that in the third quarter, both household and business funding will grow, and wholesale funding will also increase.

Overall, the cost of funding is expected to rise, primarily because of increased costs in household funds. Funding maturity has lengthened, with nearly 50% of banks anticipating an increase in maturity over the next 12 months for two consecutive quarters. The total capital amount increased over the year, and most banks expect this trend to continue.

Financial institutions cited profitability as a key factor for future capital growth, although they also foresee potential decreases in capital due to changes in regulatory or macroeconomic conditions or shifts in risk appetite.