Ukraine Needs to Build Capital Market Infrastructure, Says Pishny

What Happened

On June 1, 2026, Andriy Pishny, the head of Ukraine's National Bank, addressed the critical need for a robust capital market infrastructure during his speech at the 'Security Architecture' forum. Pishny pointed out that both domestic and foreign investors currently lack confidence due to the existing deficiencies in Ukraine's capital market framework.

In his remarks, Pishny stated that while Ukraine has a structured plan for reforms in association with the International Monetary Fund (IMF) and other financial institutions, the focus should shift from merely identifying problems to enhancing coordination. He specifically mentioned ongoing collaboration with the government and institutions like the European Bank for Reconstruction and Development (EBRD) and the World Bank to build a functional capital market.

Key Details

Pishny emphasized that a necessary legislative initiative regarding capital market development is being prepared for submission to the Ukrainian parliament soon. This law aims to create an environment that better attracts and retains investors.

Despite the current effectiveness of the Ukrainian banking system, which he described as liquid and profitable, Pishny highlighted the disparity in scalability when compared to Poland's banking sector. He noted that Ukraine's banking capital is merely one-tenth of that of Poland's, underscoring the need for significant investment and structural development.

The challenges facing capital investment in Ukraine were outlined by Pishny, who remarked that a combination of mergers, acquisitions, and consortiums for financing is essential. He identified specific sectors poised for attracting investment, particularly energy and defense industry segments, where government-backed financing currently dominates.

Pishny further elaborated that state financial institutions have granted 90% of the loans received by the defense sector and 50% by the energy sector in the last four years. However, he noted that change is underway.

Two years prior, 30 banks signed a memorandum to support the financing of energy recovery efforts. Recently, 23 banks renewed their commitment to enhance credit access for enterprises in the defense industry.

Why It Matters

The building of a trustworthy capital market infrastructure may facilitate an influx of both domestic and international investments, crucial for the economic recovery of Ukraine. Strengthening these financial foundations could help stabilize the economy and enhance growth prospects in key sectors.

Background

Discussions around improving Ukraine's capital market infrastructure have gained traction amid ongoing efforts to rebuild and reform the nation's economy. The National Bank's proactive stance reflects a broader commitment to aligning Ukraine's financial practices with international standards, essential for attracting foreign investments.

As reforms progress, the expectation is that they will lay the groundwork for healthier economic development in the coming years.