The growth of the share of state banks in the banking system up to more than 50% led to unsound competition on the market; that is why the National Bank suggests reducing it up to 30% within five years, NBU Governor Valeria Gontareva said, Economic Truth reports.

“We understand the importance of renewal of the strategy of development of state banks. Currently, in terms of the current amount of their share on the market, their competition in the banking sector is unsound”, NBU Governor stated at the round table, organized by the analytical center Atlantic Council in Washington.

Gontareva specified that NBU already prepared the respective suggestions regarding the renewal of the strategy.

According to her opinion, the banks should receive specialization and develop the respective business models for achieving such purpose.

As the head of the regulator considers, PrivatBank has to concentrate on the retail banking and work with the public, small and medium business, then in five year it will be possible to sell it ot he strategic investor, or it can conduct IPO.

“We should make the banking sector attractive for investors again”, NBU Governor emphasized.

As reported, after the nationalization of the country’s largest PrivatBank in the end of the last year, the total share of assets of state banks reached 55% from the total amount of assets of the banking system of Ukraine.

It should be reminded that according to the strategy for reforming the public banking sector, approved by the government in 2015, the privatization of two largest financial institutions – Oschadbank and Ukreximbank – should start in mid-2018. The government plans to sell 20% of shares of these banks.

The state plans to partially or fully withdraw from Ukrgasbank’s capital by the end of 2017.