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Ukrainian financial institutions focus on maintaining payment systems and safeguarding banking stability, despite operating under wartime conditions.
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Banks often have to restart operations after shelling and take greater lending risks.
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Overall, their role has evolved into a more innovative and compassionate approach to banking, marked by greater solidarity, charity, and resilience.
As of today, 24 February, Russia’s invasion of Ukraine enters its fifth year. The support required for Ukrainians in a military, reconstruction, and – above all – humanitarian domain mounts each day.
The role of financial institutions in Ukraine demands careful consideration. For banks, the primary concerns centre on maintaining payment traffic, ensuring the banking system is stable, and facilitating capital.
The fundamental difference in Ukraine is that everything is under war conditions. This means financial institutions sometimes need to restart operations after shelling and sometimes need to take more risks when lending out.
Mikael Björknert, CEO of Ukraine’s largest bank, PrivatBank, explained that institutions are there every day for the society, serving both people and corporations, and trying primarily to be respectful. There is a need to ensure society is “tight together”, and for institutions to do their utmost for military servicemen and veterans.
In response to constant threats to daily operations and resilience, Ukrainian banks have grown far more innovative.
But all in all, Björknert considers the role of financial institutions in Ukraine to be a “more respectful way of driving banking” with “much more charity, much more heart”.
