State-owned banks hold a substantial share in the national banking system.
The play an important role stabilizing the situation during crises. But the lack of clear targets and tasks for the state banks affect their commercial performance, and the established tradition of administrative interventions into their commercial decision-making can still be a hazard for them.
A special working group was created on May 18, 2015, to address the issues of the strategic development of the state-owned banks. The group comprises representatives of the state banks as well as representatives of the Ministry of Finance, the National Bank and international organizations.
The strategy of the state banks is being elaborated under the guidance of the Ukrainian Finance Minister Natalie Jaresko. The head of the working group is her deputy Artem Shevalev. The group’s coordinator is the advisor of the Finance Minister Jurij Blashchuk.
The interim target of the group is to create a route map for the development of the state banks and to define their mission and strategic development goals.
The new development strategy of the state banks shall determine what kind of influence they should have on the economy, what market share they should hold and what changes are needed in the corporate governance to increase their efficiency. The strategy shall also outline main focus for the activities of the state banks which should avoid competition between each other and in some sectors also competition with their private counterparts. Additionally, work with toxic assets on the balance sheets of the state banks should be outlined as well.
At the next stage, each state-owned bank should till the end of the current year elaborate its own detailed route map for next 5 years