Ukraine’s non-banking sector has shrunk to 825 companies: who left and why
9 May 2025 20:01
As of May 1, 2025, the number of participants in the non-banking financial market of Ukraine decreased to 825, which is 13 less than on April 1, when there were 838. The National Bank of Ukraine (NBU) published such data in its monthly report, "Komersant Ukrainian" reports.
The reduction was due to the exclusion of 13 institutions from the registers: two credit unions were excluded on their own initiative, nine financial companies and two pawnshops were forced to do so. In addition, the NBU revoked the licenses of seven financial companies, two pawnshops, and two credit unions upon their applications, and also revoked the licenses of two financial companies by force. One financial company was granted a license to narrow its scope.
At the same time, in April, 20 insurance and/or reinsurance brokers were added to the Register of Insurance Intermediaries, and a new license was issued to one pawnshop.
As of May 1, 2025, the non-banking financial services market was home to:
- 442 financial companies (there were 451);
- 53 non-life insurers (the number has not changed);
- 10 life insurers (the number has not changed);
- 1 insurer with a special status;
- 106 pawnshops (108);
- 96 credit unions (98);
- 1 lessor (the number has not changed);
- 43 insurance brokers (the number has not changed);
- 73 collection companies (the number has not changed).
The number of banking groups remained at 15, and the number of non-banking financial groups was 41.
The payment market continues to have 15 payment systems established by residents, including state-owned ones, and 14 international ones. The number of payment institutions is 18, financial institutions authorized to provide payment services is 12, an e-money issuing bank is 1, and a postal operator is 1. There are also 50 commercial agents and 31 technological payment service providers operating in the market.
In April, the NBU received 511 requests from market participants for registration and licensing actions. Of these, 396 concerned financial companies, pawnshops, and lessors; 58 concerned insurers; 6 concerned credit unions and collection companies; 50 concerned banks; and 1 concerned payment service operators.
These changes indicate the continuation of the process of optimization and cleaning up of the non-banking financial market of Ukraine aimed at increasing its transparency and stability.
What is the non-banking financial market?
Thenon-bank financial market is a part of the financial system that includes companies and institutions that provide financial services but are not banks. They are not allowed to accept deposits, but they can provide lending, insurance, currency exchange, financial leasing, money transfers, and other financial services.
Examples of non-bank financial market participants:
- Insurance companies
- Credit unions
- Pawnshops
- Financial companies (e.g., those that provide microloans)
- Leasing companies
- Factoring companies
- Collection agencies
- Insurance brokers
- Payment institutions and systems
- Cash operators, currency exchangers
What is the difference from banks?
- They cannot open accounts and accept deposits from individuals.
- They work in narrow niches, for example, only with insurance or microcredit products.
- They are regulated by the National Bank but have a different set of licenses and requirements.
Why are they needed?
- They expand access to financial services in areas where banks do not operate or are reluctant to operate.
- They enable customers to get microloans, buy a car on lease, insure property or use money transfer services.
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