The banking supervisors in this country believe that Basel I, the current capital regime adopted in 1988, must be replaced for the largest, most complex banks for three major reasons: (1) Basel I has serious shortcomings as it applies to these large entities, (2) the art of risk management has evolved at the largest banks, and (3) the banking system has become increasingly concentrated.
The decision to raise the key policy rate taken in June will continue to push up market rates. Improved attractiveness of hryvnia assets, coupled with the change in the official exchange rate, will dampen demand on the FX market. This will allow maintaining sufficient international reserves and ensuring macrofinancial stability in Ukraine. How have prices changed since the onset of the war?