National Bank of Ukraine survey finds bank funding volumes and costs rising, with growth expected in third quarter

The National Bank of Ukraine’s Bank Funding Survey found that household and business deposits and wholesale funding increased in the second quarter of 2026. Respondents expect funding volumes to continue growing in the third quarter, while average funding costs are projected to rise further because of higher rates on business deposits. More than half of banks by system assets expect to raise wholesale funding in the third quarter, including financing for recovery projects from the European Union and international financial institutions. The share of foreign currency funding resumed its gradual decline but is expected to remain stable from July through September. Funding maturities shortened for the first time since the first quarter of 2025, although banks expect them to lengthen over the next 12 months. Banks also reported that total capital increased over the past year, with profitability remaining the main driver. Macroeconomic conditions and a higher income tax rate for banks are expected to constrain future capital growth. The survey covered 25 institutions representing 96% of banking system assets, and the results reflect respondents’ views rather than National Bank of Ukraine forecasts.