The stability of the financial system was successfully maintained in 2021 as well, with almost all segments of the financial sector achieving accelerated growth. The banking system, as the main part of the financial system, has maintained its reliability, and by bringing macroprudential measures into the domain of the anti-cyclical protective layer of capital, its resistance to shocks is further strengthened, said the National Bank on Monday.
The Report states that after the gradual economic recovery from the pandemic last year, which positively contributed to the operation of the domestic financial sector and financial stability, the outbreak of the war in Ukraine brought new challenges. Although the crisis in Ukraine has no direct impact on the domestic financial sector, its consequences spilled over into the domestic economy through the movements of the global market of energy and basic products, which created pressure on domestic inflation. As of March 2022, the National Bank started with a gradual increase in the basic interest rate, thus contributing to calming inflationary expectations and maintaining medium-term price stability.