2001年-世界发展银行全球_Ukraine_-_The_Financial_Sector____________and_the_Economy___The_New_Policy_Agenda_127页_1mb

Summary of "Ukraine: The Financial Sector and the Economy: a New Policy Agenda"

Core Content

This document presents an in-depth analysis of the financial sector in Ukraine and outlines a new policy agenda for its reform. It is authored by a team of experts from the World Bank and focuses on the challenges and opportunities facing the financial system in the context of Ukraine's transition economy.

The report emphasizes that the financial sector's malfunction has hindered economic growth and social development, and that a more comprehensive and integrated reform strategy is needed to address these issues.

Main Viewpoints

• The financial sector in Ukraine has not improved significantly despite reforms implemented over the past six years.
• The sector's performance is characterized by high costs, inefficiency, and a lack of trust among the public and enterprises.
• The financial system's inability to support enterprise development and growth is due to a combination of structural, institutional, and regulatory failures.
• The malfunction has serious consequences for both enterprise development and social policy, particularly for poor families who lack access to reliable financial assets and services.

Key Information

1. Financial Sector Malfunction

• Ukraine has a large number of banks and non-bank financial institutions (NBFIs), but most are small, inefficient, and high-cost.
• Many existing institutions are financially weak and cannot be trusted with public funds.
• The financial sector's contribution to the economy is minimal, with only about 0.9% of GDP intermediated between 1996 and 1999.
• The reliance on cash and barter is high, with bank deposits accounting for only about 6% of GDP in total lending.
• The financial sector's capacity to support enterprise growth is severely limited due to its small size and the lack of a reliable financial base.

2. Consequences for Enterprises and Growth

• The financial sector's failure to provide credit to productive enterprises has led to a lack of investment and restructuring.
• Many Ukrainian enterprises are loss-making and require significant restructuring, but the financial sector lacks the capacity to support this.
• The financial institutions are not able to identify or finance the necessary changes in physical capacity and product mix.
• The credit allocation process is influenced by political considerations rather than market efficiency.
• The leverage of financial institutions over restructuring is close to zero, while other creditors (such as oblast administrations) have far greater influence.

3. Consequences for Social Policy and Poverty

• The majority of Ukraine's population does not own valuable assets, which are essential for financial inclusion and economic empowerment.
• The lack of reliable financial assets limits the ability of ordinary and poorer families to benefit from economic reforms.
• Financial scandals have eroded public trust in the financial system, with many families losing their savings.
• These failures are not only morally unacceptable but also represent a significant economic loss.

4. The Need for a New Policy Agenda

• A new and more comprehensive reform agenda is required to address the systemic issues in the financial sector.
• The report outlines an integrated strategy that includes improving the operating environment, reducing costs, and enhancing regulation and supervision.
• The strategy emphasizes the need for a unified approach to reform, with all components being critical to achieving the desired outcomes.
• The agenda includes measures to promote the growth of non-bank financial institutions and to support the development of a more efficient and competitive financial sector.

5. Forward-Looking Perspective

• The report compares Ukraine's financial sector performance with that of other transition economies in the FSU and Central Europe.
• It suggests that with sustained reform efforts, Ukraine could realistically increase its financial sector contribution to the economy.
• The report outlines two possible paths for Ukraine's financial sector development and highlights the importance of eliminating barter and non-payment systems.

Policy Implications

• The financial sector must be restructured around efficient, low-cost institutions.
• Regulatory improvements are necessary to ensure effective supervision and enforcement.
• Government policies should be reformed to reduce indirect costs on the financial sector.
• The elimination of barter and non-payment systems is crucial for the development of a functioning financial system.
• Deregulation and a more favorable environment for bank clients, especially SMEs, are needed to support economic growth.
• A stronger foundation for the growth of non-bank financial institutions is essential for a diversified financial system.

Conclusion

The report concludes that the current financial sector in Ukraine is not functioning effectively and that a new, deeper reform agenda is necessary to address the underlying issues. It stresses that the reform must be comprehensive and integrated, involving multiple components that are interrelated and essential for the sector's development and the country's overall economic growth and social development.