Ukraine is accelerating financial sector reforms to bring its banking and insurance systems into line with European Union standards. Despite the ongoing war, this process is seen as one of the key factors in strengthening investor confidence and expanding economic cooperation with Europe. Andriy Pyshnyy, Governor of the National Bank of Ukraine, spoke about this in an interview with Reuters , as reported by Dengi.ua .
According to the head of the regulator, the Ukrainian banking system has managed to remain stable even amid a full-scale war, energy attacks, and cyber threats. Today, the banking sector remains profitable and has sufficient liquidity, while the share of non-performing loans has approached its lowest levels in recent years.
Currently, the level of compliance of Ukrainian financial legislation with European standards in the banking sector is estimated at approximately 78%. Before the start of the full-scale invasion, this figure stood at about 50%.
The insurance market is still in the early stages of adaptation. Its compliance with EU requirements is estimated at 55%. The NBU is already implementing a large-scale reform of the industry, which is intended to increase market transparency and make it more attractive to international investors and insurance companies.
“We have a large-scale program of European integration. We believe that the war and the transformation we are undergoing do not mean that we should slow down. On the contrary, it means that we must use this time to accelerate progress,” emphasized Andriy Pyshnyy.
To achieve these goals, the National Bank is working on drafting more than 50 new laws and regulations designed to bring the Ukrainian financial system closer to the European regulatory model.
The issue of reforms is directly linked to the country’s future recovery. According to estimates by the Ukrainian government and the World Bank, post-war reconstruction costs over the next decade could reach nearly $588 billion.
At the same time, the volume of international financial aid is expected to gradually decrease. According to forecasts, Ukraine may receive about $53 billion in external support in 2026, $42 billion in 2027, and just $22 billion in 2028.
In light of this, the authorities plan to more actively attract private capital. To this end, in addition to reforms of the banking system, a legislative framework is being developed to ensure the full functioning of the Ukrainian stock market.
Cooperation with the International Monetary Fund remains another key element of financial stability. The Fund recently completed another review of its financing program for Ukraine. It is expected that following final approval of the decision, Ukraine will receive the next tranche in the amount of $690 million.
At the same time, the National Bank continues to gradually liberalize the foreign exchange market. The regulator intends to phase out some of the restrictions imposed during martial law, transitioning to a more flexible risk management model. In the long term, this should help restore the free movement of capital, which is one of Ukraine’s commitments on the path to European Union membership.