Sale of Sense Bank and Ukrgasbank: what depositors should do
2 April 2024 17:58
Two state-owned banks, Sense Bank and Ukrgasbank, are being prepared for privatisation. The Ministry of Finance is in a hurry to reassure customers of the banks put up for sale. All customers, regardless of the change of ownership, are guaranteed by law the return of their deposits. This was reported by the Ministry of Finance, according to Komersant ukrainskyi 
Earlier this year, it was reported that foreign investors were ready to buy Ukrgasbank and Sens Bank. In January, Deputy Finance Minister Yuriy Draganchuk said that the Cabinet of Ministers was preparing them for sale.
The share of state-owned banks in the system’s assets is 56%, and in household deposits – 65%.
The IMF wants to reduce the state’s share to level the playing field. The reduction in the number of state-owned banks is also included in the Ukraine Facility, a plan that envisages the implementation of more than 50 reforms and the fulfilment of more than 100 indicators of growth and improvement in the country
The government plans to sell Ukrgasbank and Sens Bank by the end of the year.
What clients should prepare for after the sale
The following key points should be prepared for after the sale:
- In any case, there will be a partial replacement of the top management and the Supervisory Board of the banks with representatives and managers of the new shareholders. This is a common occurrence and does not pose a risk to customers.
- Even if one bank buys a representative of a foreign banking group that already has a subsidiary in Ukraine, there will be no quick merger. Each of the banks will exist separately for a long time.
- Despite the change of ownership, the state guarantees the return of all deposits of individuals and entrepreneurs in these banks, regardless of the amount (during martial law and three months after its cancellation).
- There will be changes in tariffs and interest rates on loans and deposits in line with the interest rate policy of the new owner. This is not always negative for clients, as state-owned banks have often been known for their rather “sluggish” policy on lending rates and the competitiveness of borrowing rates.
- There will be a partial “migration” of clients, especially of state-owned institutions. In many cases, they will move to the remaining state-owned banks. In part, these companies will also move to banks where former managers from privatised state-owned banks have gone to work. This is a common phenomenon that has no negative consequences.
