Ukraine’s banks start to lower interest rates on hryvnia deposits

KIEV, Oct. 21 – Ukraine’s banks have started cutting interest rates on short-term deposits in hryvnias and on one-year deposits in foreign currency, representatives of commercial banks told Interfax-Ukraine.

One cannot say that now a common trend of interest rate falls in banks is seen. It's likely that the trend is the following: some large banks launched short-term deposit products in hryvnias with interest rates that were higher than those on the market, and now they have fallen to a market level. A fall in interest rates is seen not for all deposits, and the trend affected only those deposits with the shortest terms - up to one month. As for our bank [VAB Bank], we had interest rates that were at the market level, now the bank is not cutting rates said Tsvetan Tetrinin, deputy chairman of VAB Bank for retail business.