OREANDA-NEWS. October 21, 2010. Banks have expanded lending by 1.6% mom in Sep 2010, according to NBU. The growth is attributed primarily to corporate loans (up 2.3%), while retail lending slumped -0.2%. Deposits jumped by 3.4% mom.

Millennium Capital: the news is POSITIVE for the banking sector. The lending expansion for the third consecutive month (July-Sep 2010) strongly supports our projection of the thawing credit market in Ukraine. However, we expect even more impressive growth figures in 2011. This increase in lending was partially driven by declining yields on local government bonds that only recently served as a vent for spare liquidity for banks.