Hryvnia lending to Ukrainian businesses has grown by about thirty percent annually for more than a year. Household lending shows a similar pace for two years, indicating that bank activity is recovering despite wartime risks.
Companies of all sizes are increasing borrowing. Defense manufacturers and businesses involved in restoring energy infrastructure are becoming a larger part of the borrower base, linking credit growth directly to production and resilience.
Better quality, but substantial room remains
The number of companies actively using bank loans has doubled over a decade. Yet these borrowers still represent only about one third of companies by total assets, suggesting that many businesses either rely on internal resources or remain unable to meet lending requirements.
Portfolio quality continues to improve. As of May 2026, non-performing loans accounted for 12.6 percent, while defaults on hryvnia business loans remained below three percent.
The combination of rapid growth and low defaults gives banks room to expand carefully. Further progress depends on affordable long-term funding, credible borrowers and instruments that share risk in reconstruction and high-risk regions.
